Question: A foreign corporation whose activities are subject to VAT in the Philippines will be collected the

VAT by the following manner:

the foreign corporation shall be required to file and pay the VAT upon receipt of payment from the
Philippine source on the due date prescribed by the NIRC
the foreign corporation shall be required to file and pay the VAT upon receipt of the payment from the
Philippine source through the Philippine consular or embassy services
the domestic payor shall be required to withhold the VAT at 12% of the selling price and remit the
same to the BIR in favor of the foreign corporation
the domestic payor shall be required to withhold the VAT at 12% of the selling price and remit the same to
the BIR in the name of the domestic payor