VAT Ruling No. 001-96

May 9, 1996 VAT RULING NO. 001-96 102 (A)-000-001 Consuelo Builders Corporation 97 Visayas Avenue Project 6, Quezon City Attention: Mr . Aurelio J . Lagman, Jr . President and General Manager Gentlemen : This refers to your letter dated February 15, 1996 requesting for exemption from the payment of the value added tax as contractor of a socialized housing project jointly undertaken by the National Housing Authority (NHA) and PNOC Petrochemical Development Corporation (PPDC) at the PPDC Resettlement Site, Mariveles, Bataan, in support of your request, you submitted to this Office your contract with the NHA. 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 concern; xxx xxx xxx the private contractor engaged by NHA to undertake land development and construction in the PPDC Resettlement Site at Mariveles, Bataan is exempt from the payment of the value added tax imposed under Section 102(a) of the Tax Code, as amended. However, purchases of goods/articles by the project contractor shall be subject to the value added tax, even if said purchases are to be used for the socialized housing project. Accordingly, your request for exemption from the value added tax for the land development and construction of socialized housing units at the PPDC Resettlement Site, Barangay Dos, Mariveles, Bataan is hereby granted: Provided, however, that your purchases of goods/articles shall be subject to value-added tax, even if said purchases are to be used for the said project. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. cdtech Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue