Whether Marketing Extensions are Still Required to Register as VAT/NON-VAT When the Main Office is already a VAT Registered Business Corporation

April 4, 1994 BIR RULING NO. 081-94 107 (a) 000-00 081-94 Zizmore Corporation Rm. 607 Jovan Building Corner Samat St. Shaw Blvd. Mandaluyong, Metro Manila Attention: Mr . Orlando C . Seachon, Jr . President Gentlemen : This refers to your letter dated February 9, 1994 requesting for a ruling on whether or not your marketing extensions are still required to register as VAT/NON-VAT when your main office is already a VAT registered business corporation. cdta It is represented that your company, the Zizmore Corporation is a domestic corporation duly registered with the Securities and Exchange Commission on September 28, 1988; that you are engaged in the sale of locally manufactured cosmetic products and due to stiff competition, you were forced to establish and maintain marketing extensions in some provinces and cities; that each marketing extensions are being handled by your own individual employee assigned by your head office, and the sales force are locally recruited thru commission basis; that no books of accounts are being maintained or kept in said extensions; and that all sales and cash receipts are being forwarded to the main/head office for auditing and accounting purposes. In reply, please be informed that Section 107(a) of the Tax Code, as amended provides, viz: "Sec. 107. Registration of Value-added Taxpayer . (a) In general. Any person subject to a value-added tax under Sections 100 and 102 of this Code shall register with the appropriate Revenue District Officer. A person who maintains a head or main office and branches in different places shall register with the revenue district office which has jurisdiction over the place where the main or head office is located." Accordingly, your marketing extensions in the provinces and cities are not required to register since your main office is already a VAT registered business corporation. cdti Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue