VAT Ruling No. 032-90

February 14, 1990 VAT RULING NO. 032-90 102 (a)/103 (j)-000-00-032-90 Belson Securities, Inc. 4th Floor, Belson House 271 Epifanio delos Santos Avenue Mandaluyong, Manila S i r s : This has reference with your letter dated August 10, 1989, wherein you represented that your company, as a stock broker and a dealer in securities, is presently subject to the 10% VAT on your gross commission. Based on the foregoing, you now request for a confirmation of your opinion that: a) Your transactions with foreign clients are zero-rated; and b) Your buying and selling transactions as a stock broker and dealer in securities and exempt from value-added tax. In reply, please be informed that your activity as a stock broker is subject to 10% VAT, as provided for under Sec. 102 of the Tax Code, as amended. On the other hand, your activity as a dealer in securities is exempt from VAT pursuant to Sec. 103(j) of the same Code. Furthermore, your transactions as a stock broker with foreign clients are subject to zero-rate pursuant to Section 102(a)(2) also of the Tax Code provided that these services are paid for in acceptable foreign currency, inwardly remitted to the Philippines and accounted for in accordance with the rules and regulations of the Central Bank of the Philippines. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue