VAT Ruling No. 047-88

March 2, 1988 VAT RULING NO. 047-88 100 (a)-000-00-047-88 Canlubang Pulp Manufacturing Corporation Don Bosco and Pasong Tamo Extension Makati, Metro Manila Attention: Mr . Alejandro D . Quirante Assistant Treasurer-Comptroller S i r : This has reference to your letter dated February 18, 1988 informing this Office that your company, a BOI-registered enterprise, is a producer of abaca pulp and that abaca fiber produced locally is utilized as the major raw material. You are requesting that the abaca fiber used in the manufacture of abaca pulp for export be exempt from the imposition of the 10% VAT. In reply thereto, please be informed that the abaca fiber when sold to you by the primary producer or the owner of the land where the same are produced shall be exempt from the VAT. If sold by a trader, it shall be subject to VAT, which can be refunded to you upon presentation of proof of exportation and remittance of the foreign currency payment through the Philippine Banking System. Your supplier can also file an application for zero-rating on the sales to you, by coursing his application through the BOI. Once this application is approved, all his sales to you for use in the manufacture of your export products shall be zero-rated. Please be guided accordingly. Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue