Tax-Free Privileges Granted to NAFPCES
BIR Ruling No. 185-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 4, 1988
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May 4, 1988 BIR RULING NO. 185-88 103 (u) 000-00 185-88 Gentlemen : This refers to your letter dated March 10, 1988 stating that you are one of the suppliers of the New Armed Forces of the Philippines Commissary and Exchange Services (NAFPCES); that at present, you supply NAFPCES various manufactured food products such as Hotdogs, Hams, Bacons, Cold Cuts and various canned meat and tuna products free of taxes and duties. You now request clarification regarding the tax-free privileges of NAFPCES. cdta In reply, please be informed that pursuant to Section 1 of Revenue Regulations No. 3-87 implementing Section 1(f) of Executive Order No. 76 reading: "Sec. 1. The AFPCES and the INPSSS shall be the only agencies or units of the Armed forces of the Philippines and the Integrated National Police of the Philippines who are authorized by purchase tax-free articles or commodities from local manufacturers, producers, suppliers or importers for sale to persons entitled to commissary or PX privileges ." ( Emphasis supplied ) your sales to the NAFPCES are exempt from the 10% value-added tax pursuant to Section 103(u) of the Tax Code as amended by Executive Order No. 273). Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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