BIR Ruling

February 7, 1972 Messrs. Ross, Salcedo, del Rosario, Bito & Misa P. O. Box 781 Manila Gentlemen : This refers to your letter dated February 1, 1972 requesting that your client, Kimberly-Clerk Philippines, Inc. be authorized to bill as a separate item in its sales invoices issued to its customer only the estimate of the sales tax. It is stated in your letter that your client plans to bill to its customers in the sales invoices the estimated sales tax as a separate item; that one reason for this is the difficulty of computing the correct sales tax in view of fluctuations in prices of raw materials, not to mention the different kinds of materials used in the production of its paper products; and that another factor to be considered is the number of items that may be ordered by a customer at the same time which makes it inconvenient, if not difficult to compute the correct sales tax for each item of merchandise. In reply, I have the honor to inform you that for the foregoing considerations, your request is hereby granted, provided that if the estimated sales tax billed is less than the actual sales tax, the actual sales tax shall be paid; and if the estimated sales tax billed is greater than the actual sales tax, the sales tax billed shall be paid to this Office. Very truly yours, CONRADO P . DIAZ Acting Commissioner of Internal Revenue