VAT Ruling No. 051-90

February 23, 1990 VAT RULING NO. 051-90 100-077-89-051-90 Rhine Marketing Corporation Mac Arthur Blvd. cor. Don V. Sotto St. Cebu City Attention: Mr . Hernando O . Streegan President & Gen . Manager Gentlemen : This refers to VAT Ruling No. 077-89 dated April 3, 1989 which ruled that, with respect to marketing outfits specializing in and self-financing all installment sales, the output VAT to be declared by them in their quarterly VAT returns is to be based on the gross selling price agreed upon at the time of sale, instead of the gross collections or receipts from cash sales, downpayments and actual collections of monthly installments. In connections therewith, please be informed that the aforesaid ruling is hereby clarified in the sense that the basis of the output VAT is the gross selling price, including interest or other increments agreed upon at the time of sale. This also clarifies VAT Ruling No. 100-89 dated May 29, 1989. LibLex Very truly yours, JOSE U. ONG Commissioner of Internal Revenue