VAT Ruling No. 033-92

March 3, 1992 VAT RULING NO. 033-92 NIRC Sec. 99, 102 Precedent Ruling 007-92 Hon. Ignacio R. Bunye Chairman Metropolitan Manila Authority (MMA) Dear Chairman Bunye : Referring to your letter dated February 13, 1992, which I received last February 27th, please be informed that, in VAT RULING NO. 007-92, dated January 20, 1992, it was held that a person engaged in "dumptrucks hauling service" business is subject to the 3% percentage tax, as a transportation contractor, pursuant to Section 115, NIRC, based on his quarterly gross receipts. (Please see attached copy of VAT RULING NO. 007-92) The MMA's haulers of garbage, referred to in your said letter as "garbage collection contractors", using in the process garbage or dumptrucks, are embraced by the aforesaid term, transportation contractors. Since they are subject to the aforesaid percentage tax, they are, accordingly, exempted from the 10% value added tax, pursuant to Section 103(j), NIRC. The MMA's "bulldozer/payloader contractors" are not embraced by Section 115, NIRC, since this law only applies to "Keepers of garages, cars for rent or hire driven by the lessees, transportation contractors, persons who transport passenger or freight for hire, and common carriers by land, air, or water, except owners of bancas and owners of animal-drawn two-wheeled vehicles". Hence, your said bulldozer/payloader contractors are subject to the 10% vat, pursuant to Sections 99 and 102, NIRC. TCADEc Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue