VAT Ruling No. 068-88

March 17, 1988 VAT RULING NO. 068-88 110-000-00-068-88 Mr. Mariano G. Ordoez President, Fortune Tobacco Corporation Parang, Marikina, Metro Manila S i r : This is in reply to your letter of March 7, 1988, whereby you informed us of your arrangement with your suppliers subject to VAT, particularly dealers of tobacco leaf, under which arrangement you will, among other things, deliver to each dealer Manager's checks directly payable to the BIR equivalent to their total VAT payments shortly before quarterly payments are due. While the foregoing arrangement is an internal matter between Fortune and its VAT-covered suppliers, the BIR appreciates that it will safeguard, facilitate and ensure the filing of returns and payment of VAT by said suppliers. In that connection, we would suggest that each Manager's Check, aside from being payable to BIR, should clearly state that said check is for the account of the particular supplier and is to be applied to a particular quarter. Thus, only the supplier concerned can use the check and only for the stated purpose. It is also requested that for monitoring purposes, a quarterly list of suppliers from whom the VAT has been withheld and for which tax a Manager's Check is issued payable to the BIR, be furnished this Office, Attn.: VAT Division. cdll We appreciate your civic mindedness in proposing this arrangement. Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue