BIR Ruling

July 12, 1966 The Shell Company of the Philippines Limited P.O. Box 441 Manila Gentlemen : This refers to your letter dated January 11, 1966, requesting that the Shell Co. be exempt from the requirement of Section 2 of Revenue Regulations No. 4-65 which reads as follows: " . . . In the case of sale invoices, the invoice must show the date of the transaction, the quantity and description of the merchandise, the unit cost, the rate of sales tax to which the products or articles are subject or were subjected if issued by wholesalers, and the total price. . . ". in regard to the invoice where the buyer is merely a dealer, as in the case of a service station dealer, inasmuch as all the sales made by these dealers are for consumption. In support of your request thereof, you contend that the notation of the rate of tax has relevance only for purposes of deduction of the cost of raw materials in respect of sales to where the buyer is a manufacturer or producer or articles subject to the sales tax pursuant to Revenue Regulations No. 5-65, quoted in part, as follows: " . . . Deduction of the cost of raw materials used in the manufacture or production of the articles sold shall not be allowed unless the invoices supporting the source thereof show the kind or description of the raw materials, the rate of tax to which they have been subjected as provided by Section 15 of the aforesaid regulations, as amended." In reply thereto, I have the honor to inform you that Revenue Regulations No. 4-65 covers only sales subject to the sales tax. You need not, therefore, indicate the tax rate on sales invoices you issue on sales subject to the specific tax. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue