Transitional Presumptive Input Tax Credit of a Transportation Company Subjected to VAT Pursuant to RA 7716

April 10, 1997 BIR RULING [DA-156-97] MEMORANDUM: TO : The Revenue District Officer Revenue District No. 113 Davao City FROM : Beethoven L. Rualo Deputy Commissioner SUBJECT : Transitional Presumptive Input Tax Credit of a Transportation Company Subjected to VAT Pursuant to RA 7716 DATE : April 7, 1997 This refers to the letter of LORSHIP TRUCKING AND BROKERAGE CORPORATION dated December 6, 1996 in effect requesting confirmation that for its inability to submit on January 31, 1996 its inventory list of goods, supplies, materials and spare parts on hand as of December 31, 1995 pursuant to Revenue Memorandum Circular No. 6-95 it is still entitled to the transitional 8% Presumptive Input Tax Credit. Relevant provisions of Revenue Memorandum Circular No. 6-95 stating "Q-15: After registration of the transportation company subject to VAT, what documents shall be submitted not later than January 31, 1996? "A: The following shall be submitted not later than January 31, 1996 to the RDO where the registration was made: "a) Inventory of goods, supplies, materials and spare parts not for sale but purchased for use in business on hand as of December 31, 1995 for purposes of the presumptive input tax credit; CEHcSI "b) Inventory of unused receipts; and "c) Schedule of receivables of VAT taxpayers under No. 1 above as of December 31, 1995. Failure to submit the schedule shall subject the collection of these receivables to VAT. are mere directory provisions intended only for administrative convenience. It does not at all take away the substantive right of the taxpayer concerned to avail of the transitional 8% Presumptive Input Tax Credit pursuant to Section 105 of the Tax Code. Accordingly, subject to verification, you may allow the taxpayer to claim the transitional 8% Presumptive Input Tax Credit based on its inventory of goods, supplies, materials and spare parts on hand as of December 31, 1995. acAIES (SGD.) BEETHOVEN L. RUALO Deputy Commissioner