VAT Ruling No. 013-01
VAT Ruling No. 013-01 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 19, 2001
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March 19, 2001 VAT RULING NO. 013-01 Sec. 109 (z) Judge Godofredo P . Quimsing 158 Imelda Village Tacloban City, Leyte Gentlemen : This refers to your letter dated September 18, 2000, regarding exempt transaction from the Value Added Tax pursuant to Section 109(z) of the 1997 Tax Code quoted as follows: ". . . Sale or lease of goods or properties or the performance of services other than the transactions mentioned in the preceding paragraphs, the gross annual sales and/or receipts do not exceed the amount of Five hundred fifty thousand pesos (P550,000.00); Provided, That not later than January 31st of the calendar year subsequent to the effectivity of Republic ActNo.8241 and each calendar year thereafter, the amount of Five hundred fifty thousand pesos (P550,000.00) shall be adjusted to its present value using the Consumer Price Index, as published by the National Statistics Office (NSO). " Based on the foregoing, specifically the clause ". . . that not later than January 31st of the calendar year subsequent to the effectivity of Republic Act No. 8241 and each calendar year thereafter, the amount of Five hundred fifty thousand pesos (P550,000.00) shall be adjusted to its present value using the Consumer Price Index, as published by the NSO ." You are now requesting this Office to confirm the correctness of your computation, alleged to be based on the NSO average annual Consumer Index. In reply, please be informed that the amount of threshold exempted from the Value Added Tax is still the same. For purposes of uniformity in computing the exempt transactions from Value Added Tax, the gross annual sales and/or receipts is still P550,000.00. This amount will only be changed upon issuance of the Revenue Regulations. Inasmuch as the Revenue Regulations pertaining to this provisions is not yet issued, the same amount shall be the basis in computing the amount of threshold exempted from the value added tax. Please be guided accordingly. Very truly yours, (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group
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