VAT Ruling No. 072-89
VAT Ruling No. 072-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 29, 1989
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March 29, 1989 VAT RULING NO. 072-89 Mr. Manuel R. Barte Rm. 611, Rufino Bldg. Ayala Ave., Makati Metro Manila S i r : This refers to your letter dated October 3, 1988 stating that your client, a VAT registered corporation renders services to foreign shipping companies by renting out equipment (container chassis, lift on/lift off) and rendering container repair and cleaning services; and that payment for said services is made in Philippine currency through their local agencies in the Philippines. Based on the foregoing, you request for a ruling on whether or not your client can charge the 10% VAT on the services rendered to said foreign shipping companies in spite of the fact that under VAT Ruling No. 083-88, such services are zero-rated subject to certain conditions. In reply, please be informed that the services that qualify for zero rating under the said VAT ruling refer to the cleaning and repairing of containers. In other words, the receipts from rental of containers and lift on/lift off is subject to VAT pursuant to Sec. 102 of the Tax Code, as amended by EO 273. Please be guided accordingly. Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner
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