-sale of goods or service?

-service performed v. service consumed in ph (destination principle)?

- in BOAC, service performed here, consumed outside = not taxable
- what if service performed outside, but consumed here? - taxable? will it be considered
as an importation?
-an element of a VAT taxable transaction is that the same should be done in the ordinary course
of business?
- discuss
- for NRA, a single transaction constitutes doing business?
- see BIR ruling DA-514-06
-provides that services performed outside PH are not subject to VAT? even if consumed
in PH
- paano pag tie-in? like yung sa globe free netflix
- are payments to netflix in the form of royalties?
- permanent establishment?
- see rmc 55-13 - BERRY NICE
- see itad ruling 230-11 - did not touch upon the issue of where the transactions took place

7/4/18

- put e commerce act - YES! - see neutral tax treatment - see Asilo Thesis
- OECD
- see mamalateo discussion on done in the course of business

7/5/18
- for Chap II (RRL) - discuss first online streaming, then VAT

7/6/18
- As the government agency charged with the enforcement of the law, the opinion of the
Commissioner of Internal Revenue, in the absence of any showing that it is plainly wrong, is
entitled to great weight. 14 Also, it has been the long standing policy and practice of this Court to
respect the conclusions of quasi-judicial agencies, such as the Court of Tax Appeals which, by
the nature of its functions, is dedicated exclusively to the study and consideration of tax cases
and has necessarily developed an expertise on the subject, unless there has been an abuse or
improvident exercise of its authority. 15

7/7/18
- incorporate stuff in SPBUS outline

7/8/18
- for 2nd part of analysis, in ascertaining the intent of the legislature - while the legislature may
not have intended to tax internet transactions, the VAT could be considered as a general sales
tax, thereby comprising all services.
- the value of SM Prime Case is that if the transaction is subject to another form of business tax,
such as for example excise or percentage tax, then the same is not anymore subject to the
GST/VAT
- cite examples, such as Banks, Air Carriers, etc.

7/11/18
- sabi ni mamalateo situs of service daw in case of services (p. 16)? Nani?? - may legal basis ba
to?
- see marubeni case as support ^
- on VAT https://www.lawphil.net/judjuris/juri2005/sep2005/gr_168056_2005.html#fnt10
- discuss ejusdem generis on part 2
- in chapter 2 also, discuss whether netflix could be considered as a distributor of films
- see coch discussion on destination principle

7/12/18
- Is there such a thing as importation of services?
- put in recommendation, that for online streaming, they must comply with 55-13, for gov, enact
new law
- reverse charge mechanism