VAT Ruling No. 025-90

February 14, 1990 VAT RULING NO. 025-90 102 (a)-276-89-025-90 Commissioner Adelita A. Vergel de Dios Insurance Commission Manila Madame : This has reference to your letter dated November 28, 1989 requesting for a clarification on whether the term "insurance broker" as used in VAT Ruling No. 276-89 (dated November 13, 1989) refers to both insurance and reinsurance brokers. As represented, an insurance broker services a prospective policyholder in placing his insurance risk with an insurance company while a reinsurance broker services an insurance company in placing the excess risk assumed with a reinsurance company. In reply, this Office hereby clarifies that the term "insurance broker" as used in VAT Ruling No. 276-89 indeed, covers the more specific categories "insurance and reinsurance brokers," the services of which are both subject to the 10% Value-Added Tax (VAT) pursuant to Section 102 (a) of the Tax Code, as amended. LexLib For your information and reference. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue