Entitlement to the 8% Transitional Presumptive Input Tax Credit on the Cost of Construction Materials

April 19, 1988 BIR RULING NO. 153-88 25 (a) (2) 000-00 153-88 Gentlemen : This refers to your letter dated January 28, 1988 stating that you have been verbally informed that you are entitled to the 8% transitional presumptive input tax credit on the cost of construction materials already included in your work accomplished but not yet billed as of December 31, 1987; that since you do not expect to complete the identification of the materials included therein for purposes of complying with the requirement for the submission on or before January 30, 1988 of the inventory of construction materials included in your work accomplished but not yet billed as required under Revenue Memorandum Circular No. 51-86, you now request for a ruling that your are indeed entitled to the transitional presumptive input tax credit of 8% and that you should be allowed to submit your inventory on or before April 15, 1988. In reply, please be informed that your opinion is confirmed that the construction materials used in your work accomplished but not yet billed is entitled to a transitional presumptive input tax credit of 8% pursuant to Section 17 of Revenue Regulations No. 5-87, implementing Section 25 of the Tax Code as amended by Executive Order No. 273. In view thereof, and considering that your reason for the postponement of the date of submission of inventory to April 15, 1988 is meritorious, and in line with the policy of leniency in the enforcement of mere administrative requirement during the initial phase of implementation of the value-added tax, your request to move the date of submission of inventory from January 30, 1987 as provided under Revenue Memorandum Circular No. 15-87 to April 15, 1988 is hereby granted. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner