BIR Ruling [DA-293-96]

July 30, 1996 BIR RULING [DA-293-96] His Excellency Ambassador Enrique P. Syquia Sovereign Military Order of Malta Chancery, 6/F, Cattleya Condominium Bldg. 235 Salcedo St., Legaspi Village 1229 Makati City S i r : This refers to your letter dated June 3, 1996 requesting that you be allowed to purchase tax free, two (2) units of air-conditioners which you will use for your National Day Celebration on June 24, 1996. cdta In reply, please be informed that your request cannot be granted for lack of legal basis. Under Section 103(g) of the Tax Code, as amended by RA 7716, your said purchase of air conditioning units can only be exempt from the VAT imposition if your SMOM Chancery in the Philippines is exempt from the payment of indirect taxes under special laws or an international agreement to which the Philippines is a signatory. In other words, without a special legislation or an international agreement granting indirect tax exemption privilege on your local purchase of goods or services, we cannot grant your request for exemption from the payment of VAT on the above purchase of two (2) air-conditioning units. (BIR Ruling No. 332-92 dated October 27, 1992). Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue