VAT Ruling No. 060-00

December 18, 2000 VAT RULING NO. 060-00 Sec. 105 VAT Ruling No. 073-99 Philippine Public Safety College Fort Bonifacio Makati City Attention: Ernesto B . Gimenez MD ., MNSA President Gentlemen : This refers to your letter dated August 9, 2000, requesting for a value added tax (VAT) exemption of your purchase of hotel services from Shangri-La Hotel, Makati City. It is represented that the Philippine Public Safety College (PPSC) is an attached agency of the Department of the Interior and Local Government, created under Section 66 of Republic Act No. 6975 to be the premier educational institution for the training, human resource development and continuing education of all personnel of the Philippine National Police, and Fire and Jail Bureaus; that you engaged the hotel services of Shangri-La Hotel, Makati City, for the holding of the 2nd Asia-Pacific Conference on Police Education Training last August 21-23, 2000. In reply, please be informed that the 10% VAT 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. (Sec. 105, NIRC of 1997) Since there is no-showing that PPSC is exempt from indirect tax under any existing law, your purchases of goods, properties or services from VAT-registered entities are subject to 10% VAT, which shall then be passed on to you as an indirect tax and shall form part of the invoice price thereof. cCSDaI Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group