VAT Ruling No. 036-89
VAT Ruling No. 036-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Feb 9, 1989
Full text
February 9, 1989 VAT RULING NO. 036-89 Product Assurance & Technologies Corp. #202 Erlag Building Legaspi Village, Makati Attention: Ms . Chita O . Angeles Board Secretary S i r s : This has reference to your application for zero rate on your subcontracting services to the following: 1. Intel Phils. Mfg., Inc. 2. Zilog Phils. 3. American Microsystems, Inc. 4. Motorola Phils., Inc. 5. Dyne-Sem Electronics Corp. In this connection, please be informed that the aforementioned services cannot be effectively zero-rated but can be exempt (Section 3 of Revenue Regulation 2-88) effective January 1, 1989 (the effectivity date of your BOI registration) provided that the subcontracting activity is involved in the manufacture, processing or converting of goods for a BOI registered export-producer who exports at least 70% of its total production. LLphil In case of subcontracting services rendered to other non-BOI contractees they are subject to the 10% VAT the return of which shall be filed quarterly together with your exempt sale. Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.