VAT Ruling No. 071-01

October 11, 2001 VAT RULING NO. 071-01 Section 107 (A) VAT Ruling No. 263-89 Mardin Industrial Sales Corporation 7248 Malugay Street, San Antonio Village Makati City Attention: Mr. Dy Chi Ching President Gentlemen : This refers to your letter dated June 1, 2001 requesting exemption from the Value-Added Tax on your importation of one (1) unit of passenger elevator with a capacity of 450 kgs./ 6 persons to be used as capital equipment in your building which is under construction at 1180/B Vito Cruz Extension Street, Sta. Cruz, Makati City, under B/L No. HJSCPUSI09438105 dated May 24, 2001 with L/C No. 2001432907 dated February 27, 2001 under INV. No. W1015720 dated May 14, 2001. In reply, we regret to inform you that your request cannot be granted for lack of legal basis. The importation of one (1) unit of passenger elevator, although considered as a basic and essential part needed to finish a building project is subject to the 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise taxes, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody pursuant to Section 107(A) of the 1997 Tax Code. (BIR Ruling No. 101-17-89-263-89) Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group