BIR Ruling [UN-111-94]

March 30, 1994 BIR RULING [UN-111-94] National Housing Authority Quezon Memorial Elliptical Road Diliman, Quezon City Attention: Mr . Robert P . Balao General Manager Gentlemen : This refers to your letter dated 29 November 1993, in effect, requesting for exemption from the payment of Value added tax of the project contractors which constructed the socialized housing units in one of the Mt. Pinatubo Commission's resettlement sites located at Balaybay, Castillejos, Zambales. casia Records disclosed that the Castillejos New Settlement Homeowners' Association, Inc. is duly registered with the Home Insurance and Guaranty Corporation and that the beneficiaries of the said housing project had undergone validation and screening process conducted by the Municipal Social Worker Officer and Site Staff of then Mt. Pinatubo Task Force under the Technology and Livelihood Resource Center (TLRC) and were found eligible to the said government project as certified to by the Mt. Pinatubo Commission. Further verification revealed that the housing units have been completed, turned over and accepted by the beneficiaries. In support of the request, are the following documents viz: 1) Certificate of Home Insurance and Guaranty Corp.; 2) List of Officers of Homeowners' Association of Castillejos New Resettlement; 3) List of beneficiaries; and 4) Plan of property. In reply, please be informed that pursuant to Section 20 of R. A. No. 7279, pertinent portion of which reads: "SEC. 20. Incentives for Private Sector Participating in Socialized Housing To encourage greater private sector participation in socialized housing and further reduce the cost of housing units for the benefit of the underprivileged and homeless, the following incentives shall be extended to the private sector. xxx xxx xxx (d) Exemption from the payment of the following: xxx xxx xxx (3) Value-added tax for the project contractor concerned; xxx xxx xxx" However, purchases of goods/articles by the project contractor shall be subject to value-added tax, even if the said purchases are to be used for the socialized housing project. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon reinvestigation, it will be disclosed that the facts are different, and/or any of the requirements imposed in this letter are not complied with, then this ruling shall be considered null and void. (BIR Ruling No. 393-93 dated October 1, 1993) Very truly yours, ALICIA P. CLEMENO Officer-in-Charge Legal Service