b. An individual taxpayer whose gross sales for the year amounted to P100,000.
c. School bus operator whose gross receipts for 2018 amounted to P2,500,000
d. None of the above
Section 116 shall apply if:
1. The transaction is vat exempt and the reason for vat-exemption is
simply because the taxpayer's gross sales or receipts did not exceed the vat threshold of
P3M (previously P1,919,500); and
2. The taxpayer is not vat registered.
If the reason for vat exemption is not because of #s 1 and 2 above, the transaction is not
subject to Section 116.
The taxpayer in item “B” is known as Marginal Income Earner (MIE), an individual whose
gross sales or receipts during the year is not more than P100,000. MIE is not subject to
business tax (Vat and OPT).
8. The taxpayer is a trader of poultry feeds. Determine his applicable business tax.
c.12% vat or 3% OPT, at his option
d. Exempt from 12% vat and OPT