VAT Ruling No. 025-89

February 1, 1989 VAT RULING NO. 025-89 Sunny Isles Resources Co. Suite 409, Pacific Bank Bldg. Ayala Avenue, Makati Metro Manila Attention: Mr . Manuel T . Molina Managing Partner Gentlemen : This refers to your letter dated January 20, 1989 in connection with your pending application for VAT registration. It is represented that your company is engaged in the manufacture and export of wood products, namely, wood parquet in semi-processed form, and wood planks flooring in finished form. For your guidance, you would like to be informed whether (1) the aforesaid transactions would be considered exempt under Sec. 103 of the Tax Code, or whether they would fall under the classification of zero-rated or effectively zero-rated sales. In reply, please be informed that for manufacturing the aforesaid wood products and subsequently exporting the same, you are subject to the value-added tax at zero-rate pursuant to Sec. 100 (a) (1) of the Tax Code, as amended, provided that your export sales is paid in foreign currency inwardly remitted in accordance with Central Bank rules and regulations. Any input tax generated in connection with your zero-rated export sales may be tax-credited or refunded to you if you have no output tax liability with which to apply said input taxes. cdlex Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner