VAT Ruling No. 072-01

October 16, 2001 VAT RULING NO. 072-01 Sec. 105 VAT Ruling No. 073-99 International School Manila P.O. Box 1526 MCPO Makati City Attention: Ms. Lyn Fitzgerald Business and Human Resource Administrator Gentlemen : This refers to your letter dated June 26, 2001, requesting for a value added tax (VAT) exemption of all your local purchases of goods and services to be used directly and exclusively for educational purposes. It is represented that International School of Manila (ISM) is a non-stock, non-profit educational institution, whose exemption from taxes and duties on all its revenues and assets used actually, directly and exclusively for educational purposes as of February 2, 1987, was confirmed in BIR Ruling No. 237-87. In reply, please be informed that the 10% VAT is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services. (Sec. 105, NIRC of 1997) Since there is no showing that ISM is exempt from indirect tax under any existing law, your purchases of goods, properties or services from VAT-registered entities are subject to 10% VAT, which shall then be passed on to you as an indirect tax and shall form part of the invoice price thereof. Very truly yours, (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal & Inspection Group