BIR Ruling [UN-144-A-94]

April 26, 1994 BIR RULING [UN-144-A-94] Ultra X Petron Ybardolaza & Kamuning Sts. Quezon City Attention: Mrs . Rose Dizon Manager/Operator Gentlemen : This refers to your letter dated January 24, 1994 inquiring whether your sale of gasoline, diesel fuel oil, and kerosene (white products) to the Quezon City Government and other government agencies is subject to the 3% creditable value-added tax withholding. cdtech In reply thereto, please be informed that Section 3 of Revenue Regulations No. 10-93, implementing Republic Act No. 7649 provides, among others, that sale of goods and services to the Government subject to VAT shall be subject to withholding tax. However, under Section 103(d) of the Tax Code, as amended, sale or importation of petroleum products (except lubricating oil, processed gas, grease, wax and petrolatum) subject to excise tax imposed under Title VI of the same Code is exempt from the value-added tax. Regular and premium gasoline, kerosene and diesel fuel oil are all subject to excise tax under Section 145(5), (6), (8) and (9) of the same Code, respectively. Accordingly, the same are exempt from the value-added tax, and therefore, the sale of such petroleum products, i.e., gasoline, diesel fuel oil and kerosene to the aforementioned local Government units and agencies is exempt from the 3% creditable (VAT) withholding imposed under Rev. Regs. No. 10-93. (VAT Ruling No. 545-88 dated November 25, 1988). cd Very truly yours, JAIME M. MAZA Assistant Commissioner (Legal Service)