VAT Ruling No. 032-97

April 1, 1997 VAT RULING NO. 032-97 Sec. 103; 000; 032-97 Solid Cement Corporation 3rd Floor Golden Rock Building 168 Salcedo Street, Legaspi Village Makati City Attention: Stephen B . Sabularse Gentlemen : This refers to your letter dated July 23, 1996, requesting for a clarification as to whether oil companies can be compelled to issue VAT registered invoices to your company to cover for the added costs of VAT on Common Carriers resulting in additional cost of Bunker Fuel sold to you; and whether the same can be treated as input tax inasmuch as the incremental cost is attributable to EVAT. In reply, please be informed that since VAT transactions attract input tax credits Non-VAT, VAT-registered sellers are prohibited from issuing VAT receipts on Non-VAT sales. Accordingly, you cannot compel oil companies to issue VAT invoice for VAT exempt sales. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue