VAT Ruling No. 039-93
VAT Ruling No. 039-93 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Oct 7, 1993
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October 7, 1993 VAT RULING NO. 039-93 Section 102 (a) (2) 000-00 039-93 Det Norske Veritas Classification A/S 1751 B. Leveriza St., Pasay City P.O. Box 610, Manila, Philippines Attention: Mr . Audun B . Aasheim District Manager Gentlemen : This refers to your letter dated July 21, 1992, requesting for a ruling as to whether or not your services rendered on behalf of DET NORSKE VERITAS (DNVC), owner of DET NORSKE VERITAS Classification A/S, a Manila branch office (DNVC-Manila), falls under the VAT zero-rating. It is represented that DNVC-Manila is compensated by DNVC for the services rendered by the former in accordance with the terms and conditions of an agreement wherein DNVC shall pay DNVC-Manila in foreign currency (US Dollars) inwardly remitted through the banking systems in the Philippines. In reply, please be informed that pursuant to Section 102(a)(2) of the NIRC, as amended, services, the considerations for which is paid for in acceptable foreign currency which is inwardly remitted to the Philippines and accounted for in accordance with the rules and regulations of the Central Bank of the Philippines shall be subject to zero (0%) percent value-added tax. prll Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue
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