VAT Ruling No. 012-89
VAT Ruling No. 012-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Jan 25, 1989
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January 25, 1989 VAT RULING NO. 012-89 Philippine IATA Agents Travel Assn., Inc. Ground Floor, Century Plaza Bldg. 120 Perea St., Legaspi Village Makati, Metro Manila Attention: Marciano C . Ragaza III President S i r s : This has reference to your letter dated July 19, 1988 requesting for a review and reconsideration of paragraph 3 of Revenue Memorandum Circular No. 7-88 regarding the basis of the Value-Added Tax (VAT) imposed on the tickets sold to travel agents particularly those with mark-up exceeding 9%. In this connection, you are, likewise, requesting that you be allowed to determine your own mark-up and pay the 10% VAT based on the mark-up and not on the gross selling price (should the mark-up exceed 9%). In reply, please be informed that the 9% limitation on the mark-up pertains only to the travel agent's commission on its regular ticket sales. Therefore, if your company extends special services to your clients, you are allowed to charge a mark-up which is higher than 9% and your gross receipts from such services will be the basis for determining the 10% VAT pursuant to Sec. 102 of the Tax Code, as amended by E.O. No. 273. casia For your information and guidance. Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner
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