VAT Ruling No. 030-93

May 7, 1993 VAT RULING NO. 030-93 Section 106 (c) 000-00 030-93 Challenge Socks Corporation Lot 6, Blk. 2, Phase II Cavite Export Processing Zone Rosario, Cavite Attention: Mr . Il Soo Bae President S i r s : This refers to your letter dated February 1, 1993 stating that your company, an EPZA-registered enterprise and a VAT-taxpayer with VAT Registration No. 002-115-477-V bought four (4) units of air conditioners from Republic Commodity Corporation; that the latter passed-on the 10% value-added tax (VAT) to you on said purchase despite the fact that you have a tax exemption privilege under Article 77(1) of the Omnibus Investments Code of 1987 (E.O. NO. 226) in relation to Section 103(u) of the Tax Code. Based on the foregoing, you now request for a ruling whether you can claim the refund of the VAT passed-on to you on said purchase. In reply, please be informed that pursuant to Section 106(c) of the Tax Code, an EPZA-registered person who also registered with the VAT, may apply for the issuance of a tax credit certificate or refund of input taxes paid on capital goods whether imported or on goods locally purchased, to the extent that such input taxes have not been applied against output taxes. Accordingly, since you are a VAT-registered person you are entitled to claim a tax credit/refund of the VAT component in your importation and/or local purchases of capital goods. LLphil Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer-in-Charge)