VAT Ruling No. 022-89

January 30, 1989 VAT RULING NO. 022-89 Prima Plastic Manufacturing Corporation 75-A D. Aquino Street Grace Park, Caloocan City Attention: Mr . William Go Manager S i r s : This refers to your letter dated November 29, 1988 stating that Prima Plastics Products, a single proprietorship with VAT Registration No. 29-5-000773, has changed its ownership to Prima Plastic Manufacturing Corporation. In this connection, you now request that the same VAT registration number of Prima Plastic Products be retained by Prima Plastic Manufacturing Corporation and that previously approved applications for zero-rate be made automatically applicable to the new owner. LLphil In reply, please be informed that your request is denied. A newly incorporated corporation is a new and distinct business entity which must register prior to actual operation pursuant to Section 18(a) of Revenue Regulation No. 5-87. On the other hand, the VAT Registration Certificate of the single proprietorship should be canceled pursuant to Section 19(e) of RR 5-87, subject to the following conditions: (a) all inventories or goods at hand, i.e. capital goods, stock in trade, supplies or materials as of the date of dissolution shall be considered as "deemed sale" upon which the 10% VAT has been assessed and paid by the sole proprietorship, and the amount of output tax on the goods deemed sold shall be allowed as input tax to the new owner. (b) the original copy of the Certificate of Registration and all unused VAT invoices shall be presented to RDO 29 for invalidation. Finally, all previously approved applications for zero-rate shall be canceled and new applications in the name of the new owner shall be filed. aisadc Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner