VAT Ruling No. 053-92

April 28, 1992 VAT RULING NO. 053-92 NIRC Sec. 102, 106 Precedent Ruling 000-00 World Seasons Furniture, Inc. Canduman, Mandaue City Thru : Ms. Teresa N. Legarda Gentlemen : This refers to your letter of July 11, 1990 stating that you are a BOI-registered exporter of furniture (chairs); that your export sales is subject to zero percent VAT under Section 100(a), NIRC, hence, your are entitled to refund or tax credit of your input taxes attributable to your export sales, pursuant to Section 106 of the said NIRC; that, for the period from January to May, 1988 you filed an application for input tax refund attributable to your actual export sales; that, for the same period, you have obtained tax credit from the Board of Investment (BOI) in the amount of P41,418.00 corresponding to the 10% VAT on supplies and materials used in the manufacture of said furnitures exported pursuant to Article 21, of E.O. No. 226 (Omnibus Investments Code); that in the determination of your refundable input taxes, the VAT Division of this Office disallowed the amount of P41,418.00 since you were already given a tax credit of this amount by the BOI; hence, your request for reconsideration. Under Sections 104 and 106, in relation to Section 100(a), NIRC, a VAT-registered exporter of goods is entitled to a refund of his input taxes attributable to goods exported. Input taxes means the actual 10% VAT due on your supplier of goods and services which he passed-on to you as part of his billings. To the extent of the amount of BOI tax credit you received (P41,418.00) you did not actually shoulder cost of the 10% VAT in the sense that, while this amount had been passed-on to you by your suppliers, the said amount had been, however, credited to you by the BOI. Since, actually you have no input tax as far as this credited amount is concerned, you may not, claim the same as input tax refund in connection with your said export sales. In view thereof your request for reconsideration has to be, as it is hereby denied for lack of legal basis. aHTCIc Very truly yours, JOSE U. ONG Commissioner of Internal Revenue By: (SGD.) EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge