BIR Ruling [DA-205-01]

October 19, 2001 BIR RULING [DA-205-01] London Industrial Products, Inc . 65 Obudon Street, B. Manresa Quezon City Attention: Peter Mangasing Executive Vice President S i r : This refers to your letter dated September 14, 2000 requesting approval of your application for VAT zero-rating as a supplier of goods for sale to PEZA registered Ecozone Export Enterprises. In reply, please be informed that pursuant to Section 3 of Revenue Memorandum Circular No. 74-99, any sale of goods, property or services made by a VAT registered supplier from the Customs Territory to any registered enterprise operating in the ecozone, regardless of the class or type of the latter's PEZA registration, is actually qualified and thus legally entitled to the zero percent (0%) VAT. Accordingly, all sales of goods or property to such enterprise made by a VAT registered supplier from the Customs Territory shall be treated subject to 0 % VAT, pursuant to Sec. 106 (A) (2) (a) (5), NIRC, in relation to ART. 77 (2) of the Omnibus Investments Code, while all sales of services to the said enterprises, made by VAT registered suppliers from the Customs Territory, shall be treated effectively subject to the 0 % VAT, pursuant to Section 108 (B) (3), NIRC. As a VAT registered supplier of goods to Ecozone Export Enterprises there is no need for you to seek approval of your application for VAT zero-rating since Revenue Memorandum Circular No. 74-99 serves as sufficient basis to entitle you to the benefit of the zero percent (0%) VAT and also serves as sufficient compliance to the requirement for prior approval of zero-rating imposed by Revenue Regulations No. 7-95 effective as of the date of the issuance of said RMO No. 74-99 on October 15, 1999. Very truly yours, (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner (Legal and Inspection Group)