VAT Ruling No. 032-96

October 30, 1996 VAT RULING NO. 032-96 Sec. 103-000-032 Pasig Medical & Maternity Clinic Foundation, Inc. 79 A. Rodriguez Ave., Rosario Pasig City, Metro Manila Attention: Mr . Jesus B . Ermita President Gentlemen : This refers to your letter dated February 16, 1996 regarding a newspaper announcement which states: "RAMOS EXEMPTS 6 MORE ITEMS FROM VAT", with an attached news release issued by the Presidential News Desk stating that His Excellency Fidel V. Ramos, in a breakfast conference on June 28, 1995 with legislators, approved, among others, the exemption from the expanded VAT law of foreign donations to charitable, religious or educational institutions. It is also represented that Pasig Medical & Maternity Clinic Foundation, Inc. is a non-stock non-profit foundation engaged in humanitarian work with the urban poor. casia Based on the foregoing, you now request for confirmation of your opinion that the foreign donations of second hand hospital equipment to the above foundation is not subject to VAT. In reply, please be informed that despite the approval of the President, the abovecited exemption regarding donations to charitable institutions have not yet been enacted into law by Congress. Moreover, since such transaction is not one of those enumerated as an exempt transaction under Section 103 of the National Internal Revenue Code as amended by Republic Act 7716 and as implemented by Revenue Regulations No. 7-95, your request for exemption from value added tax is hereby denied for lack of legal basis. cdlex Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue