Whether ADMP Foundation, Inc. is Subject to VAT or a VAT Exempt Organization

January 4, 1994 BIR RULING NO. 001-94 107 000-00 001-94 ADMP Foundation, Inc. Suite 413 PASDA Mansion 77 Panay Avenue corner Timog Avenue Diliman, Quezon City Attention: Inocencio C . Bolo Gentlemen : This refers to your letter dated September 24, 1993 requesting clarification as to whether you are subject to VAT or a VAT exempt organization. Documents submitted disclosed that you are a non-stock corporation registered with the SEC under Registration No. ANO 92-000813 dated February 27, 1992; that your primary purpose is to engage in research and development activities, provide services in community organization, development planning and development livelihood, development communication and rural resource management and as such you will pursue the following programs and projects to wit: cdtech 1. Development, transfer, propagation and diffusion of indigenous and innovative forms of technology needed for urban and rural transformation, 2. Educational innovations and skills training through seminars, workshops, lectures, regular courses, symposia and other related activities, 3. Information gathering, processing, storage, analysis and dissemination, 4. Establishment of small and medium enterprises or industries and organizations of community associations, cooperatives, etc. 5. Continuing community studies surveys and development planning, including socio-cultural researches critical to the greater understanding of urban and rural development and 6. Establishment, operation and maintenance of development centers and research stations through which systematic activities and exchange of views and expertise may be effected among institutions, groups or individuals. In reply, please be informed that since you are a non-stock corporation engaged in research and development activities and which provides services in community organization for a fee, you are subject to value added tax on your business activities pursuant to Section 102 of the Tax Code, as amended and shall register as value-added taxpayer under Section 107 which provides thus: "Sec. 107. (a) Any person subject to value-added tax under Section 100 and 102 of this Code shall register with the appropriate Revenue District Officer. A person who maintains a head or main office and branches in different places shall register with the Revenue District Office which has jurisdiction over the place where the main or head office is located. b. . . . . c. . . . Any person whose gross sales or receipts in any 12-month period exceeds the amount prescribed by regulations for exemption from value-added tax shall register within 30 days after the end of the last month of that period, and shall be liable to the value-added tax commencing from the first day of the month following his registration. Moreover, ADMP shall also be subject to internal revenue taxes imposed under the Tax Code, on income derived from any activity conducted for profit, regardless of the disposition made of such income, pursuant to the last paragraph of Section 26 of the Tax Code and therefore, shall register as a value-added taxpayer under Section 107 of the Tax Code. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue