VAT Ruling No. 008-93
VAT Ruling No. 008-93 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 10, 1993
Full text
March 10, 1993 VAT RULING NO. 008-93 Section 2 (m) RR 5-87 205-90 008-93 Castro & Reyes Law Offices Room 402, V. Esguerra II Building 104 Amorsolo Street, Legaspi Village Makati, Metro Manila Attention: Atty . Danilo M . Castro Partner S i r s : This refers to your letters dated June 2, 1992 and September 29, 1992, in behalf of your client, Asia Central Employment Services, Inc., requesting for a ruling on whether or not reimbursement of advances for employees salaries and benefits are subject to the 10% value-added tax (VAT). In reply, please be informed that Section 2(m) of Revenue Regulations No. 5-87 defines "gross receipts" as the total amount of money or its equivalent representing the contract price, compensation or service fee, including the amount charged for materials supplied with the service and deposits or advance payments actually or constructively received during the taxable year. Such being the case, your reimbursement of advances for employees salaries and benefits shall be subject to the 10% VAT. prll Very truly yours, JOSE U. ONG Commissioner of Internal Revenue
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