Accreditation of Direct Sales to Exporters

June 29, 1988 BIR RULING NO. 288-88 100 (a) (1) 000-00 288-88 Gentlemen : This refers to your letter dated February 14, 1988, in effect requesting accreditation of your direct sales to exporters like Bluestar Mahogany, Inc. in order to qualify your sales as zero-rated under the Value-Added Tax Law. In reply thereto, we regret to inform you that pending approval of the proposed amendatory regulations to this effect, your request cannot be granted since the exemption of Bluestar Mahogany, Inc. as direct exporter and automatically subject to 0% under Sec. 100(a)(1) of the NIRC, as amended by E.O. 273, is not extended to its suppliers. However, whatever VAT you impose on your direct sales to exporters can be refunded or applied as tax credits to these direct exporters as long as they are VAT-registered. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner