BIR Ruling [DA-423-00]
BIR Ruling [DA-423-00] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Dec 12, 2000
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December 12, 2000 BIR RULING [DA-423-00] Sec. 105, Sec. 107(A) ZOE Broadcasting Network, Inc. 22nd Floor, Strata 2000 Bldg. Emerald Avenue, Ortigas Center Pasig City Attention: Bishop (Bro . ) Eddie C . Villanueva President and Chairman of the Board Gentlemen : This refers to your letter dated May 16, 2000 requesting for reconsideration of the assessment requiring you to pay the amount of P246,013.59 representing 10% VAT on your importation of a broadcast equipment from Italy. You stated that you are still in the early stage of operations and the said broadcast equipment is your initial importation for the operation of UHF Television Channel 33, the future God's Channel in the Philippines; that your main concern is to use the network for the propagation of the Word of God and to uplift the spirit of all men especially when they need it; and that you are aiming to be the first and only television station in the Philippines whose mission is not to concentrate on commercial endeavors nor to earn large amount of profits but instead, to be an instrument of the Gospel of salvation in our country. In reply, please be informed that pursuant to Section 105 of the Tax Code of 1997, any person who imports goods shall be subject to the value-added tax imposed under Section 107(A) of the same Code. Accordingly, your importation/purchase of a broadcast equipment from Italy shall be subject to the 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise taxes, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody. In view of the foregoing, we regret to inform you that your aforesaid request for the reconsideration of the assessment requiring you to pay the amount of P246,013.59 representing 10% VAT on your importation of a broadcast equipment from Italy cannot be granted for lack of legal basis. CTSAaH Very truly yours, (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group
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