Vehicles Categorized as a Utility Vehicle Designed Principally for the Transport of Cargoes Not Taxable as an Automobile

November 25, 1994 BIR RULING NO. 161-94 149 000-00 161-94 Mr. Michael Hidalgo Datayan 6 Kalawag St. San Francisco del Monte Quezon City Attention: Ms . Helen D . Tandog S i r : This refers to your letter dated October 27, 1994 stating that you are retired U.S. Navy Serviceman; that under the policy of the U.S. Navy, retiring Serviceman are given free transportation of their personal effects to the country of origin; and that you brought your family and personal effects, including one (1) unit of Military-Type Personnel Vehicle, a 1984 Nissan 4x4 Pick-up truck. It appears from the attached picture that the vehicle has an open bed behind the driver's compartment indicating that it is designed principally for the transport of cargoes. In reply, please be informed that the above-described vehicle falls under the category of a Utility vehicle designed principally for the transport of cargoes; thus, pursuant to BIR Ruling No. 75-89 dated April 14, 1989, it is not taxable as an automobile. Moreover, since the year-model of the vehicle is 1984, it is not covered by the provisions of Department of Finance Order No. 34-93 which implemented Executive Order No. 90, in effect, stating that "with respect to imported Utility vehicles, if the engine displacement is between 2000cc to 4500cc and the year model is 1988 to 1992, it is not taxable as an automobile," pursuant to BIR Ruling No. 377-93. Such being the case, since the above-described vehicle bears year model 1984, it is not subject to excise tax under Section 149 of the Tax Code, as amended. However, the same is subject to the 10% Value-Added Tax (VAT), pursuant to Section 101(a) of the same Code. (Refer to BIR Ruling Nos. 377-93 and 116-94) aisadc Very truly yours, RENE G. BAEZ Acting Commissioner