VAT imposed on a Recruiting Agency
BIR Ruling No. 161-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 21, 1988
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April 21, 1988 BIR RULING NO. 161-88 102 (2) 000-00 161-88 Gentlemen : This refers to your letter dated February 17, 1988 stating that you are a recruiting agency; that you send contractual workers abroad and charged their respective principals for the allotment and various expenses of the company; that the agency fee and miscellaneous expenses obviously paid in foreign currency and remitted by the principal to you are in accordance with Central Bank regulations. In reply, please be informed that you are subject to a value-added tax of 0% based on the aggregate of your agency fee and miscellaneous expense, provided that you are VAT-registered and that the payment to you is in foreign currency inwardly remitted to the Philippines in accordance with Central Bank regulations, pursuant to Section 102(a)(2) of the Tax Code, as amended by Executive Order No. 273. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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