VAT Ruling No. 056-91

June 21, 1991 VAT RULING NO. 056-91 Cargoaire Freight Forwarders, Inc. Cargo City Bldg., Nayong Pilipino NAIA Road, Pasay City Attention: Mr . Achilles F . Fortu Finance Director S i r s : This has reference to your application for zero-rate filed last March 3, 1991 stating that you are engaged in freight forwarding services rendered to clients outside the Philippines. In reply, please be informed that as a VAT-registered company, your sale of services which are paid for in acceptable foreign currency inwardly remitted to the Philippines and accounted for in accordance with Central Bank rules and regulations are zero-rated pursuant to Section 102(a)(2) of the Tax Code, as amended. There is no need for your company to apply for zero-rating on your sale of services to said clients. Only transactions covered by Sections 100(a)(2) and 102(a)(3) of the Tax Code, as amended, will require an application for zero-rating. cdtech This finds support in VAT Ruling No. 060-89 dated March 21, 1989. Very truly yours, VICTOR A. DEOFERIO, JR Deputy Commissioner