Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 10-2011)
The primary purpose of BIR Revenue Regulations No. 10-2011 is to amend certain provisions of Revenue Regulations No. 16-2005, as amended by RR No. 4-2007, which constitute the Consolidated Value-Added Tax Regulations of 2005.
These regulations were promulgated pursuant to Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended.
Section 4.106-8 of RR No. 16-2005, as amended, pertains to the change or cessation of status as a VAT-registered person.
No, goods or properties originally intended for sale or for use in the course of the business existing at the time of a change in corporate control are not subject to output tax, as they are not considered sold, bartered, or exchanged despite the change in ownership interest.
Yes, the exchange of goods or properties, including real estate used in business or held for sale or lease, for shares of stocks, whether or not it results in corporate control, is subject to VAT.
The unused input tax of the dissolved corporation as of the date of merger or consolidation shall be absorbed by the surviving or new corporation.
Yes, a change in the trade or corporate name is recognized as part of the change or cessation of status as a VAT-registered person.
No, goods owned by the corporation are not considered sold for VAT purposes despite a change in control because the corporation remains distinct from its stockholders.
The provisions of RR No. 16-2005, RR No. 14-2007, and all other issuances or portions thereof inconsistent with the provisions of these regulations are repealed, amended, or modified accordingly.
BIR Revenue Regulations No. 10-2011 took effect immediately upon its adoption on July 1, 2011.