Question: Jun, a hobbyist of car parts, received an order for a good number of his products which he

manufactures himself that would be exported to the US. Jun did not know that such order would amount
to almost P10,000,000. The said order was completed and shipped to the US, the effect on Jun on VAT
would be
His sale would be 0% rated because it was classified as an export sale and he would be liable to pay VAT
as a normal VAT registered taxpayer.
His sale would be subject to 12% VAT because he did not register as a VAT taxpayer
His sale would be 0% rated because it was an export sale but he would be classified as a VAT exempt
taxpayer
His sale would be subject to 0% because the payment was inwardly remitted through the Philippine
banking system and he would be liable to pay VAT as a normal VAT registered taxpayer.