VAT Ruling No. 051-98
VAT Ruling No. 051-98 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Dec 2, 1998
Full text
December 2, 1998 VAT RULING NO. 051-98 Sec. 108-000-00-051-98 Office of the Secretary Department of Agriculture Elliptical Road, Diliman Quezon City Gentlemen : This refers to your letter dated December 3, 1997 requesting for the exemption from value-added tax (VAT) of the premiums paid on the insurance coverage over the livestock dispersed to farmer recipients in line with the Livestock Dispersal Program of your office. In reply, please be informed that your request cannot be granted. Under Section 102 of the National Internal Revenue Code of 1977, as amended (now Section 108 of the Tax Code of 1997), services rendered by non-life insurance companies (except their crop insurances), including surety, fidelity, indemnity and bonding companies are subject to the ten percent (10%) VAT based on gross receipts. Since the insurance coverage on livestock is classified under non-life insurance, the premiums earned by the non-life insurance company is subject to the 10% value-added tax. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.