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g r no 152609
Law School Notes•Taxation Law

Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch);  G.R. No. 152609. June 29, 2005.

Law School Notes - Case Digest
August 21, 2022 by Vala No Comments

TOPIC:

VAT; Destination Principle And Cross Border Doctrine

Doctrines: 

  • As a general rule, the VAT system uses the destination principle as a basis for the jurisdictional reach of the tax. Goods and services are taxed only in the country where they are consumed. Thus, exports are zero-rated, while imports are taxed.
  • An exception to the destination principle; that is, for a zero percent VAT rate for services that are performed in the Philippines, “paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the [BSP]
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