Question: Which of the following statements is correct regarding standard input tax?

Input tax that can be directly attributable to VAT taxable sales of goods and services to the Government
shall be credited against output taxes arising from sales to non-Government entities
The government or any of its political subdivisions, instrumentalities or agencies as well as purchasers in
the course of trade or business shall deduct and withhold a final VAT due at the rate of five percent (5%)
of the gross payment
Should actual input VAT attributable to sale to government exceeds seven percent (7%) of gross payments,
the excess must be closed to expense or cost
The standard input tax is in lieu of the actual input VAT directly attributable or ratably
apportioned to sales of goods or services to government or any of its political subdivisions,
instrumentalities on agencies including GOCCs