BIR Ruling No. 057-64

August 17, 1964 BIR RULING NO. 057-64 The Hahn Manila Hahn Building, Washington Avenue Manila Attention : Mr . Alfred Hahn Gentlemen : Reference is made to your letter dated June 18, 1964 stating as follows: "We are selling motorcycles to dealers all over the Philippines. These transactions had been considered as wholesale. Recently, to avoid paying penalties at the Motor Vehicle Office resulting in the delay of transmission of invoices from our main office in Manila to dealers all over the Philippines, we were requested by said dealers to invoice the sale in the individual name of the customer directly, instead of our previous practice of invoicing the sale direct to the dealers and the dealers in turn issue their own invoice. LLpr "The question is, if we invoice the sale direct to individual customer with a notice on the face thereof that the subject motorcycle is 'sold thru dealer so and so', may this be considered as wholesale similar to our previous practice of invoicing sales to the dealer?" In answer thereto, I have the honor to inform you that the sales on the basis of the above-quoted facts will be considered sales at retail and not at wholesale. We may also state, in this connection, that under the proposed set-up, your dealers may cease to be such and become commercial brokers. This is for the reason that, under the set-up, they would be then simply soliciting buyers of your motorcycles. prll Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue