BIR Ruling No. 367-61

September 13, 1961 BIR RULING NO. 367-61 Mr. Vicente R. Formoso, Jr. Attorney-at-Law 211 Meyers Bldg., 122 13th St. Port Area, Manila S i r : Reference is made to your letter dated September 11, 1961 requesting the opinion of this Office on the following query: cdll "A distributor of radios and television sets places an order for say 5,000 radio sets and the contract of sale is duly executed this month, September, 1961. According to the terms of the contract, deliveries of the radios will be made on a monthly basis, covering a period of six (6) months, up to February, 1962. The corresponding sales invoice for 5,000 sets is issued September, 1961. "In the computation of the taxes, is the sale to be taxes as of September, 1961 or is the sale to be spread out for a period of six months up to February, 1962." In reply, I have the honor to inform you that the sales tax provided for in Sections 184, 185 and 186 of the National Internal Revenue Code is due on a consummated sale, barter or exchange. Inasmuch as the contract of sale is consummated upon delivery of the goods sold, the sales tax is computed at the time the goods are actually delivered to the vendee. In the instant case, the sales tax should be computed every month based on the selling price of the radios delivered for each month. LLpr Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue