BIR Ruling [UN-035-95]

January 16, 1995 BIR RULING [UN-035-95] Phil. Business for the Environment 3rd Floor Lower Level DAP Bldg., San Miguel Ave., Pasig, Metro-Manila Philippines 1401 Attention: Ms . Grace Favila Executive Director Gentlemen : This refers to your letter dated August 22, 1994 requesting for a certification of value-added tax (VAT) Exemption for purposes of preventing your suppliers from adding the 10% VAT on their billings. cdtech It appears that you are a non-stock, non-profit organization duly registered with the Securities & Exchange Commission. In reply, we regret to inform you that your request for the issuance of a certification of VAT Exemption cannot be granted for lack of legal basis. VAT is an indirect tax imposed on the seller of goods and services which can be passed on or shifted to the buyer. Once shifted, it is no longer a tax but merely an additional cost which the purchaser has to pay in order to obtain the goods. (Philippine Acetylene vs. Commissioner of Internal Revenue, G.R. No. L-19707, August 17, 1967; BIR Ruling No. 541-88 cd Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)