VAT Ruling No. 046-89
VAT Ruling No. 046-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Jan 25, 1989
Full text
January 25, 1989 VAT RULING NO. 046-89 Isabela Agro-World Trading Suite 1003 Tytana Plaza, Plaza Lorenzo Ruiz Binondo, Manila Attention: Mr . Romulo A . Sigua Administrative Officer S i r : This refers to your letter dated May 11, 1988, inquiring as to whether or not your corporation is required to shoulder the payment of the 10% value-added tax for services rendered to you by VAT-registered contractors/ entities. In reply, please be informed that your exemption from VAT under Sec. 103 (c) of the Tax Code, as amended by E.O. 273 is limited only to your importation and sale of fertilizer for local distribution. However, the VAT passed on to you by contractors/ entities for services rendered by them must be shouldered by your corporation. This is because VAT is an indirect tax that can be shifted to the final consumer. LibLex Please be guided accordingly. 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.