VAT Ruling No. 055-91

June 17, 1991 VAT RULING NO. 055-91 Datagraphics, Inc. Orense Cor. del Carmen St. Guadalupe, Makati, Metro Manila Attention: Mr . Antonio M . Inocentes Vice President-Finance S i r s : This refers to your letter dated September 19, 1990 requesting information whether the PHILIPPINE OVERSEAS DRILLING CORPORATION (PODC) is exempt from the 10% VAT on their purchases from your company. In reply, please be informed that the PHILIPPINE OVERSEAS DRILLING CORPORATION (PODC) is a service contractor under the Oil Exploration Development Act (P.D. 87). Under this law, it is exempt from all taxes except income tax. The exemption is limited, however, to taxes for which it is directly liable. The VAT on your sales to PODC is your liability and not that of said purchaser; and, since the PODC has no indirect tax exemption, it could not claim the privilege of making purchases from you, net of the VAT. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue