Exemption of the Importation of Passenger and/or Cargo Vessel of More than 10 Thousand Tons from VAT

May 16, 1989 BIR RULING NO. 105-89 103 (g) 000-00 105-89 Gentlemen : This refers to your letter dated April 17, 1989 requesting a ruling whether a vessel donated to you from Japan, which is presently docked in the Port of Jolo, Sulu, is exempt from VAT. It is represented that you are a non-stock, non-profit and non-political Foundation. In reply, please be informed that pursuant to Section 103(g) of the Tax Code, as amended by Executive Order No. 273, your importation of passenger and/or cargo vessel of more than ten thousand tons, whether coastwise or ocean-going is exempt from VAT. In other words, if the displacement weight of the vessel is ten thousand tons or less, the same shall be subject to 10% VAT under Section 100(a) of the Tax Code. cdtech Very truly yours, (SGD.) JOSE U. ONG Commissioner