VAT Ruling No. 006-96
VAT Ruling No. 006-96 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • May 14, 1996
Full text
May 14, 1996 VAT RULING NO. 006-96 Section 102-000-006 Philippine Association of Service Exporters, Incorporated Palacio Grande, Gen. Luna cor. Anda Sts. Intramuros, Manila Attention: Mr . Jay Fideli A . Francisco Ambassador-of-Goodwill Gentlemen : This refers to your letter dated January 9, 1996 seeking clarification on whether you are to charge ten percent (10%) VAT to the applicants or would-be contract workers whenever they pay the placement fee. In reply, please be informed that the placement fees charged by recruitment agencies from applicants or would-be contract workers shall form part of gross receipts from the sale of service subject to the 10% value-added tax (VAT) pursuant to Section 102 of the National Internal Revenue Code (NIRC) as amended. VAT is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services as part of cost, under Section 99 of the same Code. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue
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