BIR Ruling [DA-073-03]

March 11, 2003 BIR RULING [DA-073-03] Asia-Pacific Nazarene Theological Seminary Ortigas Avenue Extension Kaytikling Taytay, 1920 Rizal Attention: Mr. Nestor M. Ronquillo Business Manager Gentlemen : This refers to your letter dated October 11, 2001 requesting exemption from the 10% VAT being charged to you on your purchase of materials needed in the construction of a building at the Asia-Pacific Nazarene Theological Seminary Campus. aCSDIc 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) Since there is no showing that Asia-Pacific Nazarene Theological Seminary is exempt from indirect tax, your purchases of goods, properties or services from VAT-registered entities are subject to 10% VAT, which shall then be passed on to you as an indirect tax and shall form part of the invoice price thereof. ( VAT Ruling No. 052-2000; VAT Ruling No. 060-2000 ) Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group