BIR Ruling [DA-057-02]

April 01, 2002 BIR RULING [DA-057-02] 105 073-99 Atty. Romeo J. Dureza No. 20 San Jose cor. Tolentino Streets San Francisco del Monte Quezon City S i r : This refers to your letter dated October 18, 2000 requesting in behalf of your client, The Provincial Superior of Hijas de Jesus, Inc. (Provincial) for exemption from the payment of the Expanded Value Added Tax (EVAT) on all building materials purchased, as well as the household appliances, furnitures, etc. for its "Formation House." It is represented that Provincial is a non-stock, non-profit religious organization duly existing under the laws of the Republic of the Philippines and registered with the Securities and Exchange Commission under SEC Reg. No. 004938; that Provincial, whose "Mother House, known as Retiro de Manresa" is located at 926 Banawe Avenue, Quezon City is building a 4-storey "Formation House", for women who are aspiring to become "Sisters" or members of the Congregation; that this Formation House will also serve as the living quarters or dormitory of the "aspirants" for free; and that the location of this 4-storey building is near the Mother House, in fact just across Banawe Avenue. In reply, please be informed that the 10% VAT is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services. . . (Sec. 105, NIRC of 1997, as amended by R.A. 7716 and R.A. 8424). Since there is no showing that your organization is exempt from indirect tax under any existing law, your VAT-registered suppliers of goods, properties or services are subject to the 10% VAT which shall accordingly be passed on to you as an indirect tax and as part of the invoice price of your purchases. (BIR VAT Ruling No. 073-99 dated July 27, 1999) Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group