BIR Ruling [DA-136-06]

March 17, 2006 BIR RULING [DA-136-06] DA-319-2003 dtd 9/26/03 B. Braun Medical Supplies, Inc . 2nd Floor, JMT Corporate Center ADB Avenue, Pasig City Attention: Ma. Rhodelia Y. Rodriguez Accounting Manager Gentlemen : This refers to your letter dated July 20, 2005 requesting for confirmatory ruling in connection with VAT applicable to commission received through indent sale. It is represented that B. BRAUN MEDICAL SUPPLIES, INC. (BRAUN for short) is a company engaged in the business of importing and promoting medical supplies, instruments, machines and equipment since 1986; that it is a subsidiary of B. Braun Medical Industries, Sdn Bhd., Malaysia and the mother company is located in Melsungen, Germany; that B. Braun-Phils. (BMSPH) is the sole importer and thereby responsible in the promotion and marketing of all B. Braun & Aesculap product lines; that in the course of its business, it also acts as agent or mediator for customers in the Philippines who opt to order directly from BMSPH's suppliers (B. Braun group of companies); that as agent/mediator, BMSPH is expected to coordinate, order, processing and facilitation of the order; that the supplies/instruments/machines/equipment shall be delivered and invoiced to the customer by BMSPH's supplier/s (B. Braun group of companies) and the customer shall then remit payment to said supplier/s (B. Braun group of companies); and that in doing so, BMSPH shall earn a commission once the indent sale is consummated. In reply, please be informed that the issue is subject of a pending investigation. In fact, it is at the Preliminary Assessment Stage as of January, 2005, Thus, pursuant to Revenue Bulletin No. 1-2003 on "No Ruling Areas", Section 2 (r) thereof, this Office can not rule or render an opinion as it violates the above issuance, to quote: "(r) Issue/s or transactions involving directly or indirectly the same taxpayer/s which is/are the subject of an investigation, on-going audit, administrative protest, claims for refund or issuance of tax credit certificate . . . ." Please be guided accordingly. cDCIHT Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service