VAT Ruling No. 029-88

February 22, 1988 VAT RULING NO. 029-88 102 (a)-000-00-029-88 Prime Integrated Services, Inc. Ground Floor, RBAP Bldg. Andres Soriano cor. Arzobispo St. Intramuros, Manila Attention: Mr . Eduardo D . Barrios General Manager S i r : This has reference to your letter dated January 22, 1988 inquiring about the charges by your business which are covered by VAT. In reply, please be informed that: 1. The services you perform as a customs broker are subject to VAT. In this connection, please be guided that the VAT is to be based on the brokerage fees excluding advances for port fees such as arrastre, wharfage, stamps, etc., provided that in issuing receipts for the brokerage bill, the reimbursement for advances should be segregated; and 2. The services you perform as a transportation service contractor are likewise subject to VAT inasmuch as the transportation equipment used are not owned by your company. This is pursuant to Sec. 6 (g) of Revenue Regulations No. 5-87 stating that all receipts from service, hire of lease of transportation equipment not subject to tax on carriers and keepers of garages shall be subject to VAT. Please be guided accordingly. cd Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue