Question: Mr Cruz, a senior citizen, was engaged in the manufacture and sale of badi in the market.

His sales does not exceed P100,000 per annum. He was visited by Mila, a BIR examiner, asking her for
accounting records and why he was not imposing the VAT, her acceptable answer to the BIR would
exclude:
the as an indigent taxpayer she is not required to pay VAT
that as a seller of badi, the sale is classified as an agricultural food product in its original state, thereby
exempt from VAT
that as a senior citizen, he is not subject to VAT under RA 9994
that she is a mere employee and the real owner of the business is Mr. Anselmo