VAT Ruling No. 065-88
VAT Ruling No. 065-88 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 11, 1988
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March 11, 1988 VAT RULING NO. 065-88 100-000-00-065-88 Ms. Remedios B. Navarette Vice-President, Finance M. Ferists' House, Inc. 307 Senator Gil J. Puyat Ave. corner Geronimo, Makati, M. M. M a d a m : This refers to your letter dated February 3, 1988 asking for clarification on the complaint of a customer, Attorney J.R. Blanco, on a certain proviso of the circular sent by your company stated as follows: "Such tax (VAT) which is equivalent to 10% of gross sales on tires, batteries, accessories and vehicle service rate; will be collected from our customer on every sales issue." According to Atty. Blanco the above stated proviso is erroneous such that it should be " 10% on value-added to the non-VAT exempt products." In reply thereto, please be informed that under Sec. 100 of the Tax Code, as amended by E.O. 273, the rate and base of the value-added tax is 10% of the GROSS SELLING PRICE or gross value in money and net 10% on the value-added as claimed by your customer Atty. J.R. Blanco. cdta Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue
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