BIR Ruling [DA-014-04]

January 12, 2004 BIR RULING [DA-014-04] 101 (A) (2), 104, 107 (A) DA-147-2000; DA-513-98 Office of the Mayor Baguio City Attention: Mayor Mauricio G. Domogan City Mayor Gentlemen : This refers to your letter dated October 12, 2000 requesting for a ruling whether or not the donation by the Japanese Government through the Japan International Cooperation Agency (JICA) of spare parts for your Sewerage Treatment Plant located at the North Sanitary Camp Barangay is subject to value added tax. In reply, please be informed that the importation of the foregoing spare parts from the Japanese Government through the JICA is subject to 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise tax, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody pursuant to Section 107(A) of the Tax Code of 1997. However, said importation is exempt from the donor's tax since it is made to or for use of the National Government or any entity created by any of its agencies which is not conducted for profit or to any political subdivision of the said Government pursuant to Section 101(A)(2) of the Tax Code of 1997 in relation to Section 104 of the same Code. (BIR Ruling No. DA-513-98 dated November 19, 1998) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. SHCaDA Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group