VAT Ruling No. 052-00

October 30, 2000 VAT RULING NO. 052-00 Ms . Prescila Sangalang City Accountant City Government of Antipolo Antipolo City M a d a m : This refers to your letter dated 14 April 2000 concerning your request for exemption from the 10% value-added tax (VAT). It is represented that the City Government of Antipolo, in its 2nd year Anniversary Celebration last 4 April 2000, contracted for the services of CENTREX to put up booths for exhibits in its TRADE FAIR & FOOD FESTIVAL to showcase the products of the City's different Barangays; that the CENTREX charged a 10% VAT in its invoice billing to the City Government of Antipolo; and that, you believe, however, that the City Government of Antipolo is not liable therefore, hence, your aforesaid request for exemption from the aforesaid tax. In reply, please be informed that the VAT is a tax on " Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports goods . . . The value-added tax is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services . . . [See Sec. 99, NIRC, as amended by R.A. No. 7716 (now Sec. 105, NIRC, as renumbered by R.A. No. 8424)]. Accordingly, the 10% VAT charged or passed on by the CENTREX in its invoice billing to the City Government of Antipolo are consistent with the aforequoted provisions of law. HIACEa This Office regrets that your aforementioned request for exemption from the 10% VAT cannot be granted for lack of legal basis. Very truly yours, (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group