VAT Ruling No. 049-01

July 18, 2001 VAT RULING NO. 049-01 Sec. 1 A.O. 266 000-00 Agcaoilli & Associates 7th Floor, Citibank Center Paseo de Roxas, Makati City Attention: Ma . Carmen Agcaoili-Orena Gentlemen : This refers to your letter dated February 26, 2001 requesting for confirmation of your opinion that the venue for filing the claim for refund or tax credit of your client, Global Fruits Corporation ("GFC"), is with the One-Stop-Shop Center of the Department of Finance pursuant to Administrative Order No. 266. It is represented that GFC is a VAT-registered corporation duly organized and existing under the laws of the Republic of the Philippines to engage in the production and sale of Cavendish bananas. GFC, aside from directly exporting its products, also sells the same to export traders that subsequently export said products. As a result of these zero rated export sales, GFC will, from time to time, file applications for refund or tax credit for input taxes paid in relation to said sales. In reply, please be informed that under Section 1 of Administrative Order No. 266, the One-Stop-Shop Inter-Agency Tax Credit and Drawback Center was created for the purpose of providing an orderly and expeditious processing of tax credits of, among others, excess input taxes under Section 112 of the Tax Code, thus enhancing the competitiveness of the locally manufactured products of our manufacturers/exporters who need to secure and to use their tax credits/drawbacks at the earliest possible time. This measure has been adopted to simplify the procedure of Tax Credit Certificate issuance by avoiding the varying documentation requirements and the extended processing time of its application which are in consonance with the purposes sought to be achieved by Administrative Order No. 266. Accordingly, we confirm that the GFC may file with the Inter-Agency One-Stop-Shop and Duty Drawback Center at the Department of Finance, its applications for the issuance of tax credit certificates for the excess input taxes it incurred in relation to both its direct and indirect export sales. SIaHDA Very truly yours, (SGD.) REN G. BAEZ Commissioner of Internal Revenue