In the consolidated 1701 ITR of Non VAT registered spouses X and Y they reported P2,000,000 professional fees from practice of profession of X and P3,000,000 from the sales in the sari sari store business of Y. Which of the following is correct?
A) Both husband and wife are liable to business tax on their sales
B) The combined sales of husband and wife are liable to 12% VAT
C) Only the P3,000,000 sari sari store is subject 12% VAT
D) The professional fee is exempt from business tax and the sales from sari sari store operation is liable to business tax