VAT Ruling No. 061-92

May 6, 1992 VAT RULING NO. 061-92 NIRC Sec. 99 Precedent Ruling 006-91 Philippine Medical Women's Association, Inc. V. Luna Rd. cor. Malakas St., Quezon City Attention: Corazon Yabas Almirante, M.D. Vice President Mesdames : This has reference to your letters dated March 5 and 19, 1991 applying for VAT exemption in connection with your sales of goods under the Bantay Tindahan Project of the Department of Trade. In reply, please be informed that your request is denied for lack of legal basis. The exemption privileges granted to the Philippine Medical Women's Association (PMWA) as a non-stock, non-profit organization is limited only to taxes for which it is directly liable and does not apply to taxes which are being passed on by suppliers of goods and services. Since VAT is an indirect tax, it is not covered by the privileges. Thus, it can be shifted to the association and forms part of the cost of goods acquired. Such being the case, PMWA has to shoulder the 10% VAT passed on to it by its suppliers of goods. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge