Exemption from the VAT
BIR Ruling No. 033-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 10, 1988
Full text
February 10, 1988 BIR RULING NO. 033-88 112 000-00 033-88 Gentlemen : This refers to your letter dated December 7, 1987 stating that your company is a non-stock, non-profit corporation duly registered with the Securities and Exchange Commission; and that you are not VAT-registered because your company's estimated annual gross receipts for the 12-month period do not exceed P200,000.00. It is also verbally represented that your business activity consists in undertaking for a fee research on consumer product and products testing. Based on the foregoing representations, you now request for a ruling that you are exempt from the value-added tax pursuant to Executive Order No. 273. In reply, please be informed that your activities constitute sale of services. However, since your gross receipts therefrom do not exceed P200,000.00 during any 12-month period and you are not a VAT-registered person, you are only subject to a tax equivalent to 2% of your gross quarterly sales or receipts pursuant to Section 112 in relation to Section 103(w) of the Tax Code, as amended by Executive Order No. 273, and as amplified by Section 9(b)(18) of Revenue Regulations No. 5-87. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.