VAT Ruling No. 068-89

February 27, 1989 VAT RULING NO. 068-89 DCCD Engineering Corporation Sol Condominium Office Bldg. 5175 Amorsolo Street Makati, Metro Manila Attention: Mr . Virgilio A . Saur Chief Accountant S i r s : This has reference to your application for zero-rate dated August 23, 1988 on your subcontracting services to the following firms who are primary contractors in the US Military Bases. 1. Erincor Development Corp. 2. Capitol Industrial Construction Groups, Inc. 3. D.M. Consunji, Inc. In reply, please be informed that your application is disapproved since effective zero-rating is limited only to the services rendered by the primary contractor to which the tax exempt status of the US Military facilities is limited. VAT Ruling Nos. 054-88 and 181-88). Such being the case your subcontracting services are subject to 10% VAT which can be passed on to the primary contractor and use such tax as an input tax. LLpr Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner