VAT at 0% on Local Purchases of Construction Materials

August 9, 1988 BIR RULING NO. 384-88 100-A 384-88 Gentlemen : This refers to your local purchases of construction materials needed/required for the New Headquarters Building Project of the Asian Development Bank (ADB), certified to by the Special Projects Officer under Certificate of Project Goods No. 5 dated May 13, 1988 and transmitted to this Office by the Acting Chairman, Philippine Coordinating Committee on the Asian Development Bank, in his letter dated May 19, 1988. In connection therewith, please be informed that said local purchases of materials are subject to VAT at 0%, pursuant to Section 8(b)(2) of Revenue Regulations No. 5-87 implementing Section 100(a)(2) of the Tax Code, as amended by Executive Order No. 273; provided the seller is VAT-registered and that it applied for zero rating pursuant to Section 8(d) of said regulations. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner