VAT Imposed on the Sale of Goods to G.G. Sportswear

May 5, 1988 BIR RULING NO. 198-88 100 (1) 000-00 198-88 Gentlemen : This refers to your letter dated March 9, 1988 stating that your client, ASTRA Industrial Manufacturing, sells goods to G.G. Sportswear, of 773 J.P. Rizal Street, Makati, Metro Manila, which, in turn, exports the goods purchased from your client; that since exporters are subject to the value-added tax of 0%, G.G. Sportswear rejects the billing of the value-added tax. In reply, please be informed that since export sales do not extend the zero-rating privilege of the exporter to its suppliers, your client is subject to VAT on its sale of goods to G.G. Sportswear. (Sec. 100 Tax Code, as amended by Executive Order No. 273) The fact that said purchaser rejects the billing of the VAT will not exempt your client liability to the VAT. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner