BIR Ruling [DA-615-06]

October 13, 2006 BIR RULING [DA-615-06] Section 109 (q); VAT Ruling No. 008-98 Isuzu Philippines Corporation 114 Technology Avenue, Laguna Technopark Phase II Bian, Laguna 4024 Attention: Ms. Imelda M. Bernas Accounting Manager Gentlemen : This refers to your letter dated August 16, 2006 requesting for a certificate of tax exemption on your sale of a motor vehicle to the United Nations Development Programme. It is represented that the United Nations Development Programme (UNDP) purchased one (1) unit of Isuzu Crosswind Sportivo, 2.5L Diesel, for the project of Philippine Efficient Lighting Transformation Project, 00041692; that the Philippines is a signatory to the Convention on the Privileges and Immunities of the United Nations; and that UNDP invokes VAT Ruling No. 027-2002 dated April 30, 2002 which ruled that the sale of movable and immovable property to the UNDP shall be exempt from VAT pursuant to Section 10 of the Convention on the Privileges and Immunities of the United Nations which, however does not extend to sale of services to the UNDP. In reply, please be informed that pursuant to Section 10 of the Convention on the Privileges and Immunities of the United Nations in relation to Section 109 (q) of the Tax Code of 1997, this Office hereby confirms that the sale of one (1) unit of Isuzu Crosswind Sportivo, 2.5L Diesel, for the project of Philippine Efficient Lighting Transformation Project, 00041692 is exempt from the value-added tax. This privilege, however, may only be exercised upon presentation by the concerned United Nations agency of the written approval of this Bureau. ASICDH This ruling is being issued on the basis of foregoing facts as represented. However, if upon investigation it shall be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service