VAT Ruling No. 034-93

July 5, 1993 VAT RULING NO. 034-93 Section 99, 100 101 000-00 034-93 Ms. Josefina V. Loarca President Association of Philippine Schools of Midwifery, Inc. M a d a m : This refers to your letter dated June 7, 1993 stating that the Association of Philippine Schools of Midwifery (APSMI) is a non-stock, non-profit organization; that it is duly registered with the Securities and Exchange Commission (SEC) as of May 8, 1985; that the purpose for which the said Association was formed is to help in the attainment of the national health goal by providing relevant educational and preparation and training of manpower resources who will provide midwifery and primary health care services, i.e., to upgrade the standard of midwifery education administration by continuing education and by the holding of seminars and in-service training, among others. It is verbally represented that an amount of money donated from a foreign source and coursed thru the Department of Finance is being withheld until APSMI is able to show a confirmation from this Office that as the beneficiary of said amount of money, it is not liable to the value-added tax (VAT). In reply, please be informed that under Section 99 of the Tax Code, taxable transactions cover only sales of goods and services. In accordance with Section 2 of Revenue Regulations No. 5-87, "goods" means any movable, tangible object which is appropriable or transferable. LexLib In view of this provision, it is our opinion that money does not fall under the category of goods which are taxable under Section 100 and 101 of the Tax Code. In other words, APSMI is not subject to VAT on its receipt of money from foreign source. Very truly yours, LIWAYWAY-VINZONS CHATO Commissioner of Internal Revenue