BIR Ruling

November 3, 1969 Po & McWilliams, Inc. Suite 220 Alliance Building 410 Rosario St., Binondo Manila This refers to your letter dated August 27, 1969, requesting information as to whether or not goods sold to you by the manufacturers thereof for export are exempted from the advance sales tax and all other forms of taxes. In reply, I have the honor to inform you that the advance sales tax is a tax paid by importers on articles or goods received or purchased from without the Philippines for the purpose of sale, barter or exchange or similar transaction or for use in the manufacture or preparation of articles for sale, barter, exchange or similar transaction and are to form part thereof. Perhaps, you have in mind the manufacturers or producers sales tax imposed in Section 184, 185 and 186 of the Tax Code on locally manufactured or produced articles, in which case, the sales to you by the local manufacturer or producer are subject to the sales tax even if said articles will be exported by you. Only articles shipped or exported abroad by the manufacturer or producer thereof are exempt from the sales tax pursuant to Section 188(e) of the Tax Code. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue