VAT Ruling No. 025-88

February 11, 1988 VAT RULING NO. 025-88 102 (a)-000-00-025-88 Commission on Audit Central Office Don Mariano Marcos Ave. Quezon City Attention: Mr . Jorge H . L . Perez S i r s : This refers to your request that Philippine Textile Research Institute be advised on the applicability of the value-added tax on the security services rendered by the Luzon Integrated Services, Inc. to PTRI. In reply, please advise PTRI that under Sec. 102 (a) of the NIRC as amended by E.O. 273 security services are subject to the value-added tax. Unlike the 4% contractor's tax, the 10% VAT is not withheld by the contractee but it is to be remitted by the contractor. It is the 1% withholding tax that is still subject to the expanded withholding tax system the basis of which is the amount of service fee excluding the VAT. cdta Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue