BIR Ruling [DA-140-05]

April 11, 2005 BIR RULING [DA-140-05] RMO 9-2000 VAT Ruling No. 035-2000 Davao Agricultural Ventures Corp . 411 Quirino Ave. corner NAIA Road Paraaque City Attention: Rufino F. Mutuc, Jr. V.P. Finance Gentlemen : This has reference to your letter dated January 20, 2005 in effect requesting that the enumerated VAT-registered suppliers of raw and packaging materials of chemicals and fertilizers forming part of your product being exported be treated entitled to the benefit of the zero percent (0%) VAT. It is represented that Davao Agricultural Ventures Corp. (DAVC), is a VAT-registered domestic corporation and registered with the Board of Investment as export producer of fresh pineapple. DAVC is among the registered companies included in the 2005 BOI VAT Masterlist that are qualified for VAT-zero rated transactions pursuant to the provisions of Article 23 of Executive Order No. 226, as amended. In reply, please be informed that pursuant to the Revenue Memorandum Order No. 9-2000, sales of goods, properties or services by VAT-registered suppliers to BOI-registered exporters shall be treated as automatically zero-rated sales, without need of prior approval from this Office, provided that the supplier and the BOI-registered buyer are both VAT-registered taxpayers and provided further that the buyer is classified as 100% exporter by the Board of Investments (BOI). ( VAT Ruling No. 035-2000 dated September 20, 2000 ) By virtue of the 2005 BOI VAT Masterlist submitted to Audit Information, Tax Exemption and Incentives Division (AITEID) in which DAVC was included, its respective supplier of goods and services may then recognize the transaction as zero-rated sale by issuing a duly-registered VAT invoice with the notation "zero-rated" clearly imprinted or stamped therein. Additionally, every supplier of goods and services must likewise indicate in the VAT invoice the BOI-registry number and/or reference of the certification issued by the BOI in favor of the BOI-registered exporter. TICDSc 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. Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group