VAT Ruling No. 050-89
VAT Ruling No. 050-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Feb 22, 1989
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February 22, 1989 VAT RULING NO. 050-89 N.C. David Construction & Tracking 23-C Jesus Street SFDM, Quezon City Attention: Engr . Rogelio C . de Guzman Operational Manager S i r s : This refers to your letter dated October 27, 1988 inquiring whether your company, which is a VAT-registered construction firm with an on-going project with the Export Processing Zone Authority (EPZA), will still be subject to the four percent (4%) contractor's tax. In reply, please be informed that the 4% contractor's tax has been abolished effective Jan. 1, 1988. In lied thereof, you are now subject to the 10% value-added tax (VAT) based on your gross receipts pursuant Sec. 102 of the Tax Code, as amended by Executive Order No. 273. However, unlike the contractor's tax, the VAT is not subject to withholding. aisadc Please be guided accordingly. Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner
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