VAT Ruling No. 016-93
VAT Ruling No. 016-93 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Apr 26, 1993
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April 26, 1993 VAT RULING NO. 016-93 Section 102-318-88 016-93 Multi-Coverage (Manila) Inc. Gen. Luna St. MCM Building Malate Manila Attention: Sonel E . Labao Accountant S i r : This has reference to your letter dated March 20, 1992 inquiring whether or not your company, which is a soliciting agent for Philam Insurance Company on non-life insurance, is exempt from the Value-Added Tax (VAT). In reply, please be informed that your corporation which is licensed to do business as an insurance agent is subject to VAT pursuant to Section 102 of the National Internal Revenue Code (NIRC), as amended by E.O. No. 273. Your corporation cannot qualify for exemption under Section 103(r) of the NIRC since services referred to under this Section are those of natural persons who exercise a profession or calling and are subject to the occupation tax under the Local Tax Code. In other words, the 10% VAT will apply to services of a juridical insurance agent based on the commissions earned from the various insurance companies. Please be guided accordingly. Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer-In-Charge)
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