VAT Ruling No. 060-88
VAT Ruling No. 060-88 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 8, 1988
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March 8, 1988 VAT RULING NO. 060-88 102 (a)-000-00-060-88 Philippine Deposit Insurance Corporation Makati, Metro Manila Attention: Mr . Isayas G . Peneyra Vice-President S i r s : This refers to your request for clarification dated January 28, 1988 on the applicability of the 10% value-added tax on your service maintenance contract with Fujitec Inc. for the servicing of your elevator at a monthly contract price of P1,000. cdta In reply, please be informed that by virtue of P.D. 1931, the tax exemption privileges enjoyed by government-owned corporations are withdrawn. On this basis, the Philippine Deposit Insurance Corporation is not exempt from the value-added tax; hence, the 10% VAT charged on its purchases of goods and services shall form part of the invoice price or monthly billing in case of its maintenance service contract with Fujitec, Inc. However, if your contract price of P1,000 includes a 4% contractors tax, the increase in billing should not be more than 6%. cdtech Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue
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