VAT Ruling No. 056-99

May 17, 1999 VAT RULING NO. 056-99 106; 108 000-00 056-99 Ever Memorial Garden Company, Inc . Penthouse, APC Building 1186 Quezon Avenue Quezon City Attention: Mr . William L . Perez EVP/Treasurer Gentlemen : This refers to your letter dated September 15, 1998 proposing the use of a single set of VAT Official Receipt for your VAT and Non-VAT activities for the following reasons: 1. Manually writing the entries of one payment in two separate booklets of OR is a tedious process and really hard for the one issuing the ORs especially when it involves an average of 200 customers daily, equivalent to 400 sets of official receipts. 2. Delegating the manual writing to additional people will defeat the purpose of controlling a very important accountable form. 3. Entails more waiting time for your customers since there is lot more document to fill in. 4. The slow process has caused customer criticisms which has adversely affected your business in terms of reduced sales and a negative image in the industry. In reply, please be informed that your proposal cannot be given due course for lack of legal basis. If a taxable person is also engaged in exempt operations, he should issue separate invoices or receipts for the taxable and exempt operations. A "VAT Invoice" shall be issued only for sales of goods and services subject to VAT imposed in Sections 106 and 108 of the Tax Code of 1997, as amended. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue