Yes. The sale of the delivery van by MKI to MGSC was incidental to its trade or business, and therefore subject to VAT. Pursuant to the case of…

The question

Yes. The sale of the delivery van by MKI to MGSC was incidental to its trade or business, and therefore subject to VAT. Pursuant to the case of Mindanao Geothermal Partnership II v. Commissioner of Internal Revenue (G.R. No. 193301, 194637, March 11, 2013), an isolated transaction may be considered a transaction incidental to the taxpayer’s. Which of the following transactions is subject to Value-Added Tax (VAT)? (2014 Bar Question)

1. A.Sale of shares of stock-listed and traded through the local stock exchange
2. B.Importation of personal and household effects belonging to residents of the Philippines returning from abroad subject to custom duties under the Tariff and Customs Code
3. C.Services rendered by individuals pursuant to an employeremployee relationship
4. D.Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered with the Cooperative Development Authority

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