VAT Ruling No. 033-91

May 29, 1991 VAT RULING NO. 033-91 Continental Air Micronesia SGV Building Makati, Metro Manila Attention: Mr . Miguel M . Zosa President S i r s : This has reference to your letter dated January 25, 1990 wherein it was presented that Trans Pacific Air Service Corporation is the new General Sales Agent (GSA) of Continental Airlines/Continental Air Micronesia in the Philippines. In this regard, you would like to request/apply for a zero rate VAT on the commissions earned from the sale of airline tickets. In reply, please be informed that pursuant to Section 102(a)(2) of the Tax Code, as amended, the commissions earned from the sale of airline tickets shall only be zero-rated when they are paid for in acceptable foreign currency actually or constructively remitted to the Philippines and accounted for in accordance with the rules and regulations of the Central Bank of the Philippines. Otherwise, the commissions shall be subject to 10% VAT in accordance with Section 102(a) of the same Code. Please be guided accordingly. LexLib Very truly yours, JOSE U. ONG Commissioner of Internal Revenue