BIR Ruling No. 359-11

September 29, 2011 BIR RULING NO. 359-11 Section 107 of the Tax Code of 1997; VAT Ruling No. 026-03 Inoza Properties, Inc. 179 Mariano Ponce Street Caloocan City, Philippines Attention: Ms. Josephine Velasco Company Representative Gentlemen : This refers to your letter dated May 18, 2011 requesting for the issuance of a Certificate of VAT Exemption. As represented, Inoza Properties, Inc. is a company fully engaged in real estate buying, developing, subdividing and selling, including the importation of machineries and equipments. The certificate of VAT exemption is being requested for the purpose of the renewal of Inoza Properties, Inc.'s accreditation with the Bureau of Customs. In reply, please be informed that under Section 107 of the Tax Code of 1997, importation of goods (which includes machineries), is subject to the 10% (now 12%) VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise taxes, if any, and other charges, such tax to be paid by the importer (regardless of whether or not the importer is VAT-registered or non-VAT registered), prior to the release of such goods from customs custody. In view thereof, your request for exemption from VAT on the subject importation is hereby denied for lack of legal basis. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue