BIR Ruling [DA-347-03]

October 8, 2003 BIR RULING [DA-347-03] RMO 9-2000 VAT Ruling No. 075-2001 Technical Lighting Philippines Granville Industrial Complex Building C2, Governors Drive Carmona, Cavite 4116 Attention: Mr. Wolfgang H. Nefzer Vice President Gentlemen : This refers to your letter dated May 12, 2003 requesting for a BIR certification to the effect that TECHNICAL LIGHTING PHILIPPINES, is a zero-percent (0%) VAT entity. It is represented that TECHNICAL LIGHTING PHILIPPINES is a newly organized domestic corporation with SEC Registration Certificate No. CS200261379 issued on December 2, 2002 and TIN No. 221-942-820-000 issued by RDO No. 54 on January 16, 2003; that your application with the Board of Investments as a New Export Producer of Lighting Fixtures on a Non-Pioneer Status was approved with Registration Certificate No. 2003-040; that you sent a formal request to the Revenue District Officer of RDO No. 54 for approval to be a zero rated company; that you are manufacturing lighting fixtures of which more than 50% of the total production is for export; and that you were advised to file the request with the National Office to expedite the processing. aSCDcH In reply, please be informed that RMO No. 9-2000 explicitly provides that it covers only VAT-registered suppliers of enterprises that are duly registered with the Board of Investments as manufacturer-exporter and whose manufactured products are 100% exported to foreign countries. Section 3 of RMO No. 9-2000 includes the following as one of the conditions for VAT registered suppliers to be accorded as VAT zero-rating: aHSCcE "The buyer must be BOI-registered manufacturer producer whose products are 100% exported . For this purpose a certification to this effect must be issued by the Board of Investment (BOI) and which certification shall be good for one year unless subsequently re-issued by the BOI". Considering, therefore, that your products are not 100% exported, despite being a BOI-registered entity your request for zero-rating (0%) under RMO No. 9-2000, is denied for lack of legal basis. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group