VAT Ruling No. 025-96

September 23, 1996 VAT RULING NO. 025-96 Sec. 106-000-025 European Chamber of Commerce of the Philippines 5/F King's Court II Bldg. 2129 Pasong Tamo 1253 Makati, Metro Manila Attention: Mr . Henry Schumacher Gentlemen : This refers to your letter dated January 12, 1996 in effect, requesting for a ruling whether German nationals purchasing VAT-taxable goods or services while in the Philippines may claim the VAT portion of the price as tax refund. cdll It is represented that the German VAT law allows foreigners sojourning in Germany to claim a refund on the VAT element included in the price of VAT-taxable purchases of goods or services while in Germany. In reply, please be informed that your request cannot be granted for lack of legal basis. Among other features of the Philippine VAT system that negates the grant of refund to the foreigners' purchases of goods or services is that under Section 106 of the Tax Code, as amended by Republic Act No. 7716 otherwise known as the Expanded Value-Added Tax Law (EVAT), refund is granted only to VAT-registered persons doing business in the Philippines. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue