The following transactions are exempt from VAT, except:

a. Importation of prescription drugs for diabetes, high cholesterol, and hypertension.

b. Sale of prescription drugs for cancer, mental illness, tuberculosis and kidney diseases.

c. Salary paid by a hospital to a registered medical technologist who performed laboratory services for inpatients.

d. Sale of cough syrup by the pharmacy of a hospital to outpatients.

Statement 1: A taxpayer whose gross sales or receipts exceeded the amount of P3,000,000 shall pay VAT even if he is not VAT registered; consequently, he is also entitled to input taxes. Statement 2: Importer of goods for personal use is not subject to VAT if he is not-VAT registered

a. Both statements are true

b. Both statements are false

c. Only statement 2 is true

d. Only statement 1 is true

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is d Sale of cough syrup by the pharmacy of a hospital to outpatients ... View the full answer