VAT Ruling No. 011-90

January 18, 1990 VAT RULING NO. 011-90 Elitool Precision Arms Corp. Bo. Napindan, Taguig Metro Manila Attention: Mr . Domingo E . De Guzman Finance Manager S i r s : This refers to your letter dated November 8, 1989, seeking clarification on whether or not the value-added tax (VAT) on the sale of goods by your company to the Armed Forces of the Philippines can be withheld and remitted by the said government agency to the BIR. In reply, please be informed that Revenue Memorandum Circular No. 18-88 prescribes that the VAT, the amount of which cannot be fixed, determined, computed or ascertained at the time of such payments by the government offices, is not subject to the withholding and remittance provisions of R.A. No. 1051. Hence, the Armed Forces of the Philippines cannot withhold and remit directly the VAT to the BIR. cdtech Very truly yours, JOSE U. ONG Commissioner of Internal Revenue