Additional Amount Collected for Excess Baggage of Bus Passengers Subject to 10% VAT

July 8, 1999 BIR RULING NO. 094-99 000-00 094-99 Times Transportation Co., Inc. Vigan, Ilocos Sur 2700 Attention: Mr . Carlito C . Cardanao Accountant Gentlemen : This refers to your letter dated September 2, 1998 requesting for a ruling on whether the additional amount collected for the excess accompanied baggage of passengers is subject to the 10% Value-Added Tax or to the 3% Common Carrier Tax. It is represented that you are a common carrier engaged in transporting passengers by land; that incidental to said business you also charged additional amount for the excess baggage of passengers by using the bus tickets; that you also transport unaccompanied cargoes and baggages of customers that are sent to provincial destination; and that said unaccompanied baggage and cargoes which are covered by Bills of Lading, are subjected to the 10% Value-Added Tax and Documentary Stamp Tax. dctai In reply, please be informed that the additional amount collected by you for the excess baggage of passengers by issuing ordinary bus tickets is subject to the 10% VAT pursuant to Section 108 of the Tax Code of 1997. However, freight tickets covering goods, merchandise or effects carried as accompanied baggage of passengers on land and water carriers primarily engaged in the transportation of passengers are not subject to the documentary stamp tax pursuant to Section 191 of the Tax Code of 1997. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue