BIR Ruling [DA-186-99]

March 25, 1999 BIR RULING [DA-186-99] Balmeo Bautista & Peasales Law Offices Rm. 309 Margarita Building J.P. Rizal cor. Cardona Streets Makati City Attention: Atty . Leonides F . Balmeo Gentlemen : This refers to your letter dated March 5, 1999 regarding your various claims for tax credit for erroneously or illegally paid value added tax (VAT) which you filed on behalf of your clients, Davao Light and Power Co., Inc. and Cotabato Light and Power Co., Inc. on various dates. It is represented that these claims emanated from your client's payments of VAT on their importations of machineries, equipments, and parts used in the generation of electric, light, heat and power; that per the CTA decisions involving such companies, which became final, the said VAT payments are illegal and/or erroneous; that your claims were forwarded by the Appellate Division to Revenue Regions No. 13, Cebu City; and that the Assessment Division of BIR Revenue Region No. 13 is requiring the filing of a certain BIR Form No. 2552 as a condition for the review of the claims. In reply, please be informed that your clients, Davao Light and Power Co., Inc. and Cotabato Light and Power Co., Inc. being power generating companies are exempt from VAT and therefore are not required to file VAT returns. Accordingly, filing of BIR Form No. 2552 or any VAT return for that matter as a condition for the review of the claims is not necessary. The documents forwarded by the Appellate Division to Revenue Region No. 13, Cebu City are sufficient compliance for the processing of the claims. This will therefore serve as a notice to the Chief, Assessment Division, BIR Revenue Region 13 to set aside the need of filing BIR Form No. 2552 for claims for tax credit resulting from illegally and erroneously paid VAT. llcd Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)