VAT Imposed on Stevedoring Services
BIR Ruling No. 462-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 26, 1988
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September 26, 1988 BIR RULING NO. 462-88 99-00 297-88 462-88 Gentlemen : This refers to your letter dated September 7, 1988 requesting for a ruling whether or not you, a stevedoring contractor, can pass on the 10% value-added tax on the charges that you collect from the shipping owners who availed of your stevedoring services. In reply, please be informed that your query is answered in the affirmative. As a person rendering stevedoring service you are subject to the value-added tax, pursuant to Section 99 of the Tax Code, as amended by Executive Order No. 273. Since VAT is an indirect tax, it can be passed on to the end-user such as the shipping owners who availed of your stevedoring services. Once shifted to the customer as addition to the cost of goods/services sold, it is no longer a tax but an additional cost which the customer has to pay in order to obtain the goods/services. (Philippine Acetylene Co. vs. Commissioner of Internal Revenue, G.R. No. L-19707, August 17, 1967) cdtech Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner
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