VAT Ruling No. 020-92

March 11, 1992 VAT RULING NO. 020-92 NIRC Sec. 103 (u) Precedent Ruling 000-00 Sugar Regulatory Administration North Avenue Diliman, Quezon City Attention: Mr. Jose Ma. T. Zabaleta, Board Member/Conference Chairman Gentlemen : In reply to your letter dated May 28, 1991, please be informed that your request that the 10% VAT be only imposed on the basis of the incremental value incurred in the processing of sugar from raw to refined form cannot be favorably considered for lack of legal basis since, under Section 100, NIRC, the 10% VAT is computed based on gross selling price rather than on incremental value. This Office also regrets that your request that the sales of molasses be exempted from the 10% VAT may not be granted because this commodity is not a VAT-exempt item under Section 103, hence, taxable under Section 100, NIRC, as implemented by Revenue Regulations No. 5-89. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue