VAT Ruling No. 015-92

February 17, 1992 VAT RULING NO. 015-92 NIRC 103 (u) Precedent Ruling 246-90 Fashion'e Fabrics, Inc. Evangelista St., Bo. Santolan Pasig, Metro Manila Attention: Manuel O. Sea President S i r s : This is with reference to your letter dated August 28, 1991 requesting exemption from payment of the 10% VAT on your sub-contracting services rendered to the following BOI-registered export producers, to wit: 1. Filipinas Tyrom Garments 2. Kansas Manufacturing 3. Page Industries, Inc. 4. Nusselt Industries, Inc. 5. Feranti Shirt Factory, Inc. 6. MB Garments 7. Fairland Knitcraft Co., Inc. 8. Maxima Garments, Inc. 9. Gelmart Industries Phils., Inc. 10. JR Garments Corporation 11. Tropic Isles Mfg. Corporation 12. Berlei Hestia Phils., Inc. It is represented that you were registered with the Board of Investments (BOI) last September 6, 1988 as a garment subcontractor of BOI-registered firms; and that the BOI has issued a certification to the effect that the above-mentioned contractors are BOI-registered firms and are exporting at least 70% of their total production based on their 1990 production and export performance reports submitted to that office. In reply, please be informed that pursuant to Section 3 of Revenue Regulations No. 2-88, your subcontracting services shall qualify for VAT exemption effective September 6, 1988 (date of approval of your BOI registration as a garment subcontractor) provided that at least 70% of the total output of the above-listed main contractees are exported. This reiterated our letter to your dated October 20, 1988. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue