VAT Ruling No. 067-88
VAT Ruling No. 067-88 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Jan 11, 1988
Full text
January 11, 1988 VAT RULING NO. 067-88 105-000-00-067-88 MEMORANDUM FOR : The Commissioner RE : Fortune Tobacco Corporation The reason for the provision (Section 105) allowing transitional input tax credit is to give recognition to the sales tax component of inventories which otherwise would qualify as input tax credit had such stock of goods been acquired during the effectivity of VAT. In the case of articles subject to the excise tax , the excise tax component which may form part of the value of the inventory do not qualify an input tax credit. It is for this reason that the 0% transitional input tax credit on supplies only will be considered in determining the VAT payable by manufacturers of excisable articles. casia BERNARDO A. FRIANEZA Chief, VAT Division
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