VAT Ruling No. 001-88

January 5, 1988 VAT RULING NO. 001-88 100 (a)-009-87-001-88 Secretary Tomas Alcantara Undersecretary Department of Trade & Industry Sen. Gil J. Puyat Avenue Makati, Metro Manila Dear Secretary Alcantara : This is in connection with the question of indirect or constructive exporters and their request for zero rating which is the subject matter of our telephone conversation and also brought up by Undersecretary Follosco at our meeting last Monday with Secretary Jayme. cdt The request is premised on the allegation that locally manufactured goods produced by a VAT registered establishment and sold and transferred to another VAT registered establishment who will use the said products as part of its raw material requirement to produce articles intended exclusively for export and actually exported should be treated as an export and therefore subject to 0% tax under Section 100 of the National Internal Revenue Code. In principle, the BIR agrees and is presently preparing revenue regulations (for approval by the Secretary of Finance) prescribing procedures to govern the manner of invoicing and other documentation procedures to control the disposition of goods delivered to a bonded warehouse. Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue