Request for Application of Tax Credit Certificate in Payment of VAT on the Importation of Raw Materials

April 13, 1998 BIR RULING NO. 036-98 204 (c)-000-00-36-98 Chemfield, Inc. 2nd Floor, Rudgen Bldg. Shaw Blvd., Pasig City Attention: Mr . Francisco E . Jacinto General Manager Gentlemen : This refers to your letter dated January 12, 1998 requesting authorization from this Office for you to apply Tax Credit Certificate No. SN 000629 in the amount of P14,304,54.65 in payment of VAT on your importation of raw materials. prLL It is represented that you are a BOI-registered pioneer enterprise under the supervision of the Department of Health and engaged in the manufacture of bulk life-saving semi-synthetic antibiotics, that you are the first and only pharmaceutical manufacturer in the country supplying the bulk semi-synthetic antibiotics requirements of the local pharmaceutical industry; and that your raw materials are regularly sourced from foreign suppliers. In reply, please be informed that Section 204(C), 2nd paragraph of the Tax Code of 1997, provides that "A Tax Credit Certificate validly issued under the provisions of this Code may be applied against any internal revenue tax, excluding withholding taxes, for which the taxpayer is directly liable . . . ". Such being the case, you can apply your Tax Credit Certificate No. SN 000629 issued on September 26, 1997 as erroneously paid advance sales tax for the year 1987, in payment of your VAT liability due on your importation of raw materials. LexLib Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue