VAT Ruling No. 019-93

April 27, 1993 VAT RULING NO. 019-93 Section 099 484-88 019-93 Petron Corporation 7901 Makati Avenue Makati, Metro Manila Attention: Atty . Liberador V . Villegas General Counsel Gentlemen : In reply to your letter dated January 22, 1993, please be informed that in the sale of VAT-taxable product by a VAT taxpayer to a non-VAT or VAT-exempt taxpayer, the former is allowed to pass on the 10% VAT to the latter as part of cost. No input tax is generated by the purchaser because, under the VAT system, the sale to a non-VAT or VAT-exempt purchaser is sale to an end-user or consumer; thus, no monetary equivalent can be claimed by said non-VAT, or VAT-exempt purchaser. Accordingly, as a VAT taxpayer selling voltron 60, a kind of lube or grease which are also subject to VAT, you may pass on the 10% VAT to La Union Electric Cooperative, Inc. (LUELCO), Aringay, La Union, without the latter generating input tax credits. dctai Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer-in-Charge)