VAT Ruling No. 047-90

February 15, 1990 VAT RULING NO. 047-90 107/112-000-00-047-90 Esquire Adjustment Corporation No. 902 Rufino Building Ayala Avenue, Makati, M.M. Attention: Ireneo S . Ambong, Jr . Adm . Assistant Gentlemen : This refers to your letter of October 26, 1989 requesting for issuance by this Office of a certificate of exemption from 10% value-added tax. It is represented that you are engaged in business as "insurance adjuster" for marine and casualty insurance; that you were already engaged in business even prior to September 1, 1986; that you did not register as a VAT person; and that your gross annual receipts from sale of service is less than P200,000.00. In reply, please be informed that pursuant to Section 103(w) of the Tax Code, your business of selling service of not more than P200,000.00 a year is exempt from the value-added tax. In lieu of the 10% value-added tax, you are subject to the 2% percentage tax on your gross quarterly sales or receipts as prescribed under Section 112, also of the Tax Code, subject to the condition that your gross receipts from sales of service shall not exceed P200,000.00 in any 12 month period. At your option, however, you may register as a VAT person under Section 107(d) of the same Code. Once you are registered under the VAT, you are liable to the 10% VAT regardless of the amount of your gross annual sales or receipts and you shall remain subject thereto until the cancellation of your optional VAT registration. cdtech Very truly yours, JOSE J. ONG Commissioner of Internal Revenue