VAT Ruling No. 023-88
VAT Ruling No. 023-88 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Feb 10, 1988
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February 10, 1988 VAT RULING NO. 023-88 102 (A)-000-00-023-88 F.F. Cruz & Co., Inc. 800 E. de los Santos Ave. Quezon City S i r s : This refers to your proposal of including the 10% VAT on contractors in the total bid price and that during collection or billing by the contractors, the VAT shall be withheld by the government (in case of government contracts) and by the clients (in case of private contracts). The law prescribes that the tax base shall be the gross receipts excluding the VAT. There is no law authorizing private persons to withhold the 10% VAT and remit the same to the government. While your proposal may be meritorious, may we suggest that you submit this proposal to Congress for proper disposition. cd Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner
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