VAT Ruling No. 018-96

September 23, 1996 VAT RULING NO. 018-96 Sec. 103 (q)-000-018 Negros Navigation Company Pier 2, North Harbor Tondo, Manila Attention: Mr . Mario C . Arnaiz Corporate Affairs Officer Gentlemen : This refers to your letter dated April 12, 1996, requesting confirmation of your opinion that the importation of a 23 year old passenger/cargo vessel with 6,000 GRT is exempt from the Value Added Tax. In reply, please be informed that Section 103 (q) of the Tax Code as amended by R.A. No. 7716, as implemented by Sec. 4.103-1 (b)(g) of Revenue Regulations No. 7-95 include as an exempt transaction the importation of passenger and/or cargo vessel of more than five thousand tons, whether coastwise or ocean going, including engine and spare parts of said vessel to be used by the importer himself as an operator thereof. Accordingly, the importation of the vessel above described is exempt from the value added tax. This ruling is being issued on the basis of the foregoing facts as represented. If it will be discovered upon investigation that the facts are different, this ruling shall be considered null and void. LLphil Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue