Amendments to Section 9 of Revenue Regulations 5-87

December 6, 1989 REVENUE REGULATIONS NO. 10-89 SUBJECT : Amendments to Section 9 of Revenue Regulations 5-87 SECTION 1 . Scope . Pursuant to the provisions of Section 245 in relation to Section 4, both of the National Internal Revenue Code, as amended, these Regulations are hereby promulgated amending Section 9 of Revenue Regulations 5-87. 2 . Section 9 (b) (16) of Revenue Regulations 5-87 is hereby amended to read as follows: cd i '(16) Transactions which are exempt under special laws or international agreements to which the Philippines is a signatory.' The person claiming exemption from the value-added tax on his purchases of goods and services under this sub-paragraph shall submit a copy of such special legislation or international agreement to the Commissioner or his authorized representative. He shall also present the four copies of the VAT invoice covering the transaction required to be issued under Revenue Regulations No. 6-89. The amount of sale stated on the invoice must be net of the value-added tax. In proper cases, the claim shall also be accompanied by the recommendation of the appropriate government agency. Upon determination that the claimant is entitled to the exemption, a certificate of exemption shall be issued to the grantee in triplicate; original copy to be given to the seller of the goods and services; the duplicate to the grantee; and the triplicate to be retained on file. Before such copies of the certificate are given to the grantee, all copies of the invoice shall be stamped with the words 'VAT Exempt-Seller Not Entitled to Input Tax.' This sale covered by the exemption certificate shall be reported by the sellers in his VAT return. As exempt sales, and in support thereof, the original of the certificate shall be attached to his return. SECTION 3 . Effectivity . These Regulations shall take effect immediately upon approval. cd (SGD.) VICENTE R. JAYME Secretary of Finance Recommending Approval: (SGD.) JOSE U. ONG Commissioner of Internal Revenue