VAT Ruling No. 027-00
VAT Ruling No. 027-00 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Aug 21, 2000
Full text
August 21, 2000 VAT RULING NO. 027-00 R.A. 6938 007-91 University of the East C.M. Recto Ave. Manila City Attention: Ms . Wilhelmina A . De Las Alas Vice President for Administration Gentlemen : This refers to your letter dated June 20, 2000 inquiring whether you should charge 10% VAT on rentals to one of your lessee client who is a cooperative duly accredited by the Cooperative Development Authority, and therefore claims that it is exempt from both direct and indirect taxes. In reply thereto, please be informed that the exemptions of cooperatives from taxes under Art. 61 and 69 of the Cooperative Code of the Philippines (RA No. 6938) is limited only to the taxes for which these cooperatives are directly liable. This being the case, the cooperatives should pay the 10% VAT billed by your office on their rental payments since said tax is an indirect tax which can be passed on as part of the cost of the services being rendered notwithstanding the cooperative's tax exemption privileges under RA No. 6938 (VAT Ruling #007-91, dated Jan. 29, 1991) TAaCED Very truly yours, (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.