BIR Ruling No. 091-62

August 17, 1962 BIR RULING NO. 091-62 Mr. P. O. Siojo 5th Floor, Martinez Bldg. Dasmarias, Manila S i r : Reference is made to your letter of the 2nd instant, requesting information on the following: "Could you please tell us if a person is subject to sales tax for selling a car which was brought in by a returning resident? "The car was purchased sometime in January, 1961 in America, was used by the applicant until its arrival in the Philippines sometime in September, 1961. When the party was asked to pay the taxes and customs duties, it was found to be huge sum more than the party expected although, of course, within the law. Because the party cannot afford to pay the taxes, she has decided to sell the car at a loss, meaning to say less than the purchase price of the car plus taxes and duties to be paid to the Bureau of Customs. Now, the owner who brought in the car would like to sell it. Under these circumstances, is the party liable for a sales tax?" In answer thereto, I have the honor to inform you that, under the circumstances quoted above and if the car will be sold before its released from customs custody, the vendor is not subject to the advance sales tax. However, the vendee is subject to either the compensating or advance sales tax depending upon whether the car will be bought for his personal use or for the purpose of resale. cdtech Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue