VAT Ruling No. 044-92

March 26, 1992 VAT RULING NO. 044-92 NIRC Sec. 100 (a) 102 (a) Precedent Ruling 000-00 Morning Star Printing Press 513 5th St., San Martin Subd. San Isidro, Angono, Rizal Attention: C.P. Gonzales S i r s : This has reference to your letter dated January 27, 1992 stating that you are registered under Republic Act No. 6810 "Magna Carta for Countryside and Barangay Business Enterprises", otherwise known as "Kalakalan 20" last October 7, 1991 as evidenced by CBBE Registration No. 18; and that your gross sales is more than P200,000 annually. Based on the foregoing, you now request confirmation of your opinion that you are not required to be registered as a VAT taxpayer. In reply, please be informed that pursuant to Section 17(c) of the guidelines implementing R.A. No. 6810 (Kalakalan 20), enterprises registered under said law shall be exempt from VAT for a period of five (5) years from its date of registration; hence, you are not required to register for VAT purposes. However, said exemption is limited only to the payment of VAT to which you are directly liable. Since VAT is an indirect tax, it may be passed-on to you by your seller of goods and/or services and once shifted, it forms part of the cost of goods and/or services purchased. ( VAT Ruling No. 032-91 ) Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue