VAT Ruling No. 051-89
VAT Ruling No. 051-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Feb 20, 1989
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February 20, 1989 VAT RULING NO. 051-89 Mr. Robert L. Capuchino Manager-Logistics Department Philippine-Overseas Drilling & Oil Development Corporation QUAD Alpha Centrum 125 Pioneer, Mandaluyong Metro Manila, Philippines Dear Mr. Capuchino, This refers to your letter dated November 17, 1988 requesting for exemption from the 10% Value-Added Tax imposed on the materials/equipment you purchased and used for oil exploration projects in the Northeastern part of Palawan. In reply thereto, please be informed that your tax and duty exemption privileges under PD 1354 as a service contractor engaged in oil and petroleum explorations which were previously withdrawn by EO 93 have been restored by FIRB Resolution No. 19-87. However, the exemption is applicable only to the direct tax liability of Philippine Overseas Drilling and Oil Development Corporation but is not extended to its suppliers of materials and equipment. LLpr Thus, suppliers may pass on the VAT to your company as additional cost. Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner
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