Rate of Sales Tax Due on "Volkswagen Kombi"

February 13, 1959 BIR RULING NO. 066-59 The President D.M.G., Incorporated 423 Mendoza, Quiapo Manila S i r : This refers to your letter to the Regional Director, B.I.R. Regional District No. 3, Manila, dated October 29, 1958, stated as follows: "Please favor us with your internal revenue taxes ruling on a locally assembled 'Volkswagen' Kombi type transporter as shown in the attached catalog." While it is not so stated in your letter, we presume that your corporation is the one assembling the so-called "Volkswagen Kombi" transporter. If such be the case, then it is considered the manufacturer of said transporter and as such, it is subject to the fixed (C-14) annual tax of P20.00 and to the sales tax on its gross monthly sales of the aforesaid vehicle. As regards the rate of sales tax due on the sales of said motor vehicle, you are advised that, if it is not provided with latches upon which seats may be attached, it is considered a truck, subject only to 7% sales tax; but if it is provided with said latches it is considered an automobile, subject to either 50%, 75% or 100% sales tax, depending upon the gross selling price thereof. cdta Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue