A.

Cross Border Doctrine mandates that no VAT shall be imposed to form part of the
cost of the goods destined for consumption outside the territorial border of the
taxing authority.
Destination Principle, goods and services are taxed only in the country where these
are consumed.
B. Impact refers to the initial burden of the tax, while incidence refers to the ultimate
burden of the tax. Impact is at the point of imposition, incidence occurs at the point
of settlement. The impact of a tax falls upon the person fr6m whom the tax is
collected and the incidence rests on the person who pays it eventually. For example,
suppose a tax — excise duty — is imposed on soap.
A tax- able supply is chargeable to VAT at the standard rate of 15% or zero-
rated which is a supply chargeable at the rate of 0%. When the transaction is zero-
rated, this means that the VAT charged on inputs relating to these goods can be
claimed as input tax.
C. Effectively Zero Rated Transactions Effectively zero rated sale of goods and
properties refer to sale of goods and properties by a VAT registered person to a
person or entity who was granted indirect tax exemption under special laws.
D. Gross sales refers to all of the revenue you generate from selling your main product
or service. If you make shoes, your gross sales amount refers to the money you
received from selling shoes.
Gross receipts refers to all revenues received from sales and other sources, such as
rent, royalties, investment income or cash from the sale of an asset. Many small
businesses generate revenue only from the sale of their products, so gross sales and
gross receipts are the same. The word “gross” refers to the total amount of money
you received before deducting any taxes, production costs or overhead expenses.
E. A sale of goods or transactions is considered VAT Exempt if it falls under SEC 109
– Exempt Transactions. Normally VAT Exempt transactions are basic necessities such
as agricultural products, tuition fees, lending activities, real properties, books,
transportation, etc.
F. The transitional input tax shall be 8% of the value of the inventory or actual VAT paid,
whichever is higher, which amount may be allowed as tax credit against the
output tax of the VAT-registered person.

Persons or firms engaged in the processing sardines, packed noodles, mackerel, milk,
refined sugar and cooking oil shall be allowed a presumptive input VAT, equivalent
to four percent (4%) of the gross value in money of their purchases of primary
agricultural products which are used as inputs to their production.