03-13-2023, 06:15 PM
YAP Vs. BIR, CTA NO. 10019
March 9, 2023
HIGHLIGHTS
VAT
VAT is a tax on transactions, imposed at every stage of the distribution process on the sale, barter, exchange of goods or property, and on the performance of services, even in the absence of profit attributable thereto. It is a tax imposed on each sale of goods or services in the course of trade or business, or importation of goods as they pass along the production and distribution chain. The VAT is a tax on consumption, an indirect tax that the provider of goods or services may pass on to his/her customers. The seller is the one statutorily liable for the payment of the VAT. In other words, the party directly liable for the payment of the tax is the seller, not the purchaser.
Moreover, it must be stressed that VAT is imposed on the "gross selling price or gross value in money of the goods or properties sold, bartered or exchanged" and is "to be paid by the seller or transferor.
For sure, when one purchases or spends, such person is deemed the buyer of the goods and/ or services, and logically not the seller of the same. Such being the case, no VAT imposition should likewise arise from petitioner's supposed undeclared purchases and expenses for taxable years 2011, 2012, and 2013.
March 9, 2023
HIGHLIGHTS
VAT
VAT is a tax on transactions, imposed at every stage of the distribution process on the sale, barter, exchange of goods or property, and on the performance of services, even in the absence of profit attributable thereto. It is a tax imposed on each sale of goods or services in the course of trade or business, or importation of goods as they pass along the production and distribution chain. The VAT is a tax on consumption, an indirect tax that the provider of goods or services may pass on to his/her customers. The seller is the one statutorily liable for the payment of the VAT. In other words, the party directly liable for the payment of the tax is the seller, not the purchaser.
Moreover, it must be stressed that VAT is imposed on the "gross selling price or gross value in money of the goods or properties sold, bartered or exchanged" and is "to be paid by the seller or transferor.
For sure, when one purchases or spends, such person is deemed the buyer of the goods and/ or services, and logically not the seller of the same. Such being the case, no VAT imposition should likewise arise from petitioner's supposed undeclared purchases and expenses for taxable years 2011, 2012, and 2013.