VAT Ruling No. 065-02

September 16, 2002 VAT RULING NO. 065-02 University of Asia and the Pacific Pearl Drive, Ortigas Complex Pasig City Attention: Ms. Alma C. Vistro Accounting & Finance Head Gentlemen : This refers to your letter dated January 20, 2002 which was referred to this Office by the Revenue District Officer of Revenue District No. 43, Pasig City, requesting for a certificate of exemption from VAT as a non-stock, non-profit educational institution. In support of your request, you submitted photocopies of Certificates all issued on May 10, 1999 by the Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA) showing that the following courses of the University of Asia and the Pacific (UA&P) are accredited by the Commission on Higher Education (CHED), viz : Master of Science in Industrial Economics, Master of Arts in Applied Business Economics, Master of Business Economics and Master of Arts in Education, which are all valid up to May 2004. In reply, please be informed that pursuant to Section 109(m) of the Tax Code of 1997, educational services rendered by private educational institutions shall be exempt from the value-added tax provided that they are duly accredited as such either by the Department of Education, Culture and Sports (DECS) or by the Commission on Higher Education (CHED). Accordingly, the gross receipts derived by UA&P from rendering educational services are exempt from the 10% VAT but only up to school year 2004. Furthermore, this exemption does not extend to your other activities, other than rendering educational services. (VAT Ruling No. 068-2001) Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUND P. GUEVARA Deputy Commissioner Legal & Inspection Group