Tax Exemption Privileges of AFPCES

March 27, 1990 BIR RULING NO. 038-90 99 000-00 038-90 M a d a m : This refers to your request for a ruling made during the recent induction ceremonies of the officers of the Tax Management Association of the Philippines, Inc. held on February 13, 1990 as to the tax exemption privileges of the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES). cdta In reply, please be informed that pursuant to Fiscal Incentives Review Board Resolution No. 12-89 dated July 6, 1989, said tax exemption privileges enjoyed by AFPCES as well as the Philippine Constabulary/Integrated National Police Service Stores System (PC/INPSSS) which were restored temporarily by FIRB Resolution No. 5-87 dated April 13, 1987 had been withdrawn effective January 1, 1990 (See Revenue Memorandum Circular No. 14-90). Such withdrawal of tax exemption privilege renders ineffective Revenue Regulations No. 3-87 dated February 9, 1987 which prescribes the rules and regulations relative to the purchases and sales of tax-free articles by AFPCES and PC/INPSSS as well as Revenue Memorandum Circular No. 45-87 dated October 7, 1987 which limits the tax-free privileges of said entities. Furthermore, BIR Rulings No. 185-88 and 195-88 which ruled that sales to AFPCES are exempt from VAT are considered revoked. cdt Very truly yours, (SGD.) JOSE U. ONG Commissioner