Juan (non-VAT registered), an indigenous person, sold to Pedro Furnitures (VAT-registered) bamboo and rattan poles at the total price of P100,000. Pedro Furnitures thencut the bamboo and rattan poles, split it into several pieces, removes the skins, dried it,and then convert it into armchairs. They then sold the armchairs to Xavier University atthe price of P1,000,000, and to Liceo de Cagayan University at the price of P2,000,000.Pedro Furniture's ask your advice who will be liable of the VAT