VAT Ruling No. 027-89
VAT Ruling No. 027-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Feb 1, 1989
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February 1, 1989 VAT RULING NO. 027-89 JBY Tanlimco 455-457 Juan Luna St., Binondo, Manila Attention: Mr . Mateo Go Tanlimco Pres . & Gen . Manager S i r s : This refers to your application for zero-rate filed last November 8, 1988 of your sale of industrial sewing machines to garment manufacturer-exporters. In reply, we regret to inform you that your sale of industrial sewing machines to said VAT-registered exporters does not qualify for effective zero-rating. Section 2 of Revenue Regulations No. 2-88 provides that only the sale of raw materials to BOI-registered exporters whose export sales exceed 70% of its total annual production can qualify for effective zero-rating. Since industrial sewing machines are not raw materials, its sale can not qualify for effective zero-rating. cdtech Please be guided accordingly. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue
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