VAT Ruling No. 035-88

February 29, 1988 VAT RULING NO. 035-88 102 (a) (1)-000-00-035-88 Mr. David Hallac President Best Century Phils., Inc. P.O. Box 425 Makati, Phils. S i r : This has reference to your letter dated January 25, 1988 requesting that your company be given the zero-rate and your filing code be amended since your company is an exporter without any local sales nor any domestic transactions, stores or shops and have no inventory and that you also act as foreign buyers' agent in the Philippines collecting commission from the foreign buyers. In this connection, please be informed that pursuant to the provisions of Section 102 (a)(1) and (2) of the Tax Code as amended by E.O. 273, processing, manufacturing or repacking of goods for other persons doing business outside the Philippines which goods are paid for in acceptable foreign currency inwardly remitted to the Philippines and accounted for in accordance with the rules and regulations of the Central Bank shall be subject to the value-added tax at zero per cent (0%). Since your company is engaged in this kind of service and at the same time a VAT registrant, the commissions collected from foreign buyers are automatically qualified for zero rate. For this, you are still required to file a quarterly return the deadline of which depends upon the code letter assigned to you. In your case, since you fall under Group A, your taxable quarters are as follows: cdta 1st Qtr Jan. 1 Mar. 31 2nd Qtr Apr. 1 June 30 3rd Qtr July 1 Sept. 30 4th Qtr Oct. 1 Dec. 31 Please be guided accordingly. Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner