Exemption from VAT
BIR Ruling No. 284-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 29, 1988
Full text
June 29, 1988 BIR RULING NO. 284-88 103 (w) 000-00 284-88 M a d a m : In reply to your letter dated April 21, 1988, please be informed that since your annual gross sales do not exceed P200,000.00 you are exempt from the value-added tax. [Sec. 103(w), Tax Code; Sec. 9(b)(18), Revenue Regulations No. 5-87] However, you are subject to 2% tax if you are not a VAT registered person. (Sec. 112, Tax Code) Likewise, you may optionally register as a VAT taxpayer in which case, you shall be liable to the value-added tax. [Sec. 18(c), Revenue Regulations No. 5-87] Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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