BIR Ruling [DA-024-04]

January 16, 2004 BIR RULING [DA-024-04] 109 (1) VAT Ruling No. 174-90 FriendlyCare Foundation, Inc. 710 Shaw Boulevard Mandaluyong City Attention: Mr. Rogelio Y. Salipot Accounting Manager Gentlemen : This refers to your letter dated April 15, 2003, stating that you are a non-stock, non-profit corporation organized to provide and deliver a full range of high quality family health and planning services such as: a. Family Medicine; b. Pediatrics, c. OB-Gynecological; d. Laboratory Services; e. Diagnostic Services; f. Family Planning Counseling; g. Bilateral Tubal Ligation (BTL); h. Non-Scalpel Vasectomy (NSV); and i. Adoption of selected DOH program "Sentrong Sigla Program" such as: ii. Immunization iii. Diabetes iv. Rabies iv. TB DOTS v. Cancer Screening Program. that you are catering to the less fortunate segments of society (Class C & D) and that your charges are affordable through 10 clinics (8 branches in Metro Manila, 1 in Davao and 1 in Cebu): that you would like to inquire if the services you provide are subject to 10% VAT, and if in the affirmative, you would like to request that the services provided be exempted from 10% VAT, considering that additional cost will be a big burden to your less fortunate clients. In reply, please be informed that based on the aforesaid representations, your medical services are exempt from the value-added tax of 10% pursuant to Section 109(1) of the 1997 Tax Code. Accordingly, your gross receipts from the operations of FriendlyCare Foundation, Inc. are exempt from the 10% VAT. Furthermore, this exemption does not extend to your other activities involving sale of goods or services. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it shall be ascertained that the facts are different, then this ruling shall be considered null and void. IHCDAS Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group