Question: Roxanoca Land, a real estate developer, organized in the 1960s, bought several parcels of land in Rio Tuba, Palawan during the 1960s. It has never registered as VAT liable since its sales during the past years did not meet the mandatory liability for VAT. However, during the current year, due to increased transactions, it became liable for the first time for VAT. Roxanoca Land invoked entitlement to transitional input taxes on all its landholdings, but the same was disallowed because according to the BIR, the purchase of these lands happened at a time when no VAT was imposed in the country, and that no input VAT was actually paid on such lands. Was the action of the BIR proper? Decide Roxanoca Land is entitled to transitional input VAT regardless of its prior non VAT registration Roxanoca Land is entitled to transitional input VAT only if it can claim that it shouldered the burden of the VAT during the prior years. Roxanoca Land is not entitled to transitional input VAT as it never registered itself in the past as VAT liable Roxanoca Land is not entitled to transitional input VAT because when the purchase was made, the VAT law was not yet in force.
Question: Roxanoca Land, a real estate developer, organized in
the 1960s, bought several parcels of land in Rio Tuba, Palawan
during the 1960s. It has never registered as VAT liable since its
sales during the past years did not meet the mandatory liability
for VAT. However, during the current year, due to increased
transactions, it became liable for the first time for VAT. Roxanoca
Land invoked entitlement to transitional input taxes on all its
landholdings, but the same was disallowed because according to the
BIR, the purchase of these lands happened at a time when no VAT was
imposed in the country, and that no input VAT was actually paid on
such lands. Was the action of the BIR proper? DecideRoxanoca Land
is entitled to transitional input VAT regardless of its prior non
VAT registrationRoxanoca Land is entitled to transitional input VAT
only if it can claim that it shouldered the burden of the VAT
during the prior years.Roxanoca Land is not entitled to
transitional input VAT as it never registered itself in the past as
VAT liableRoxanoca Land is not entitled to transitional input VAT
because when the purchase was made, the VAT law was not yet in
force.
