VAT Ruling No. 035-98

November 17, 1998 VAT RULING NO. 035-98 Sec. 109 (q)-008-98-035-98 United Nations Children's Fund 106 Amorsolo Street, Legaspi Village 1229 Makati City Attention: Mr . Hernan Jaramillo Sr. Programme Coordinator Gentlemen : This refers to your faxed letter dated 21 September 1998 requesting that your office be provided with this Bureau's certification of your VAT-exempt status in connection with your procurement of five (5) units of Asian Utility Vehicles which you have placed and ordered from Union Motor Corporation and Gencars, Phil. Inc. It is represented that all your local procurement transactions for provisions and supplies pursuant to your assistance agreement with the Philippine Government are agreed and arranged with local suppliers without the value-added tax and that these local supplies are requesting your office to provide them a copy of the government certification of your tax free (i.e., VAT-exempt) status. dctai In reply, please be informed that Section 109(q) of the Tax Code of 1997 provides: "SEC. 109. Exempt transactions . The following shall be exempt from value-added tax: xxx xxx xxx "q) Transactions which are exempt under international agreements to which the Philippines is a signatory or under special laws, except those under Presidential Decree Nos. 66, 529, and 1590. xxx xxx xxx" Such being the case and since the Philippines is a member of the United Nations and a signatory to the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations adopted by the General Assembly on 21 November 1947, the United Nations and its related organizations operating in the Philippines shall be exempt from the VAT on their importations and purchases of important movable and immovable properties for official use. Thus, your procurement of five (5) units of Asian Utility Vehicles which you have placed and ordered from Union Motor Corporation and Gencars, Phil. Inc. is exempt from the payment of VAT. (VAT Ruling No. 008-98 dated January, 1998) LLjur This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal and Enforcement Group