VAT Imposed on All Security and Non-Security Documents

December 28, 1988 BIR RULING NO. 603-88 102 (a) 000-00 603-88 Gentlemen : This refers to your letter dated September 9, 1988 informing this Office that you will impose VAT on all security and non-security documents delivered starting September 1988 and on all outstanding orders, pursuant to VAT Ruling No. 100/102-000-00-379-88 dated August 23, 1988. cdt In connection therewith, please be informed as follows: 1. In the case of contracts entered into by the Central Bank Security Printing Department for the printing of security and non-security documents completed on or before December 31, 1987 but delivered and paid in 1988, the receipts derived therefrom are subject to the 4% contractor's tax but subject to the conditions prescribed in Section 6(g) of Revenue Regulations No. 5-87 viz: (i) filing of an information return showing the name(s) of the contractee(s) and the amount(s) of the contract price outstanding as of December 31, 1987, and containing a declaration of the obligation to pay the contractor's tax due; (ii) billing of the unpaid amount not later than December 31, 1987 by the contractor and copy of such billing to be attached to the information return herein required; (iii) recording of the amount receivable in the books of accounts of the contractor for the year 1987; and (iv) filing not later than January 20, 1988, and/or before the 20th day after each calendar quarter, of the regular contractor's tax return for the payment of the contractor's tax on payments received in 1988. 2. In the case of contracts entered into prior to January 1, 1988 but the printing of the documents is not completed as of December 31, 1987 and, therefore, the delivery and payments thereon are made after said date, the receipts derived by the contractor are subject to 10% VAT. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner