VAT Ruling No. 072-91

July 17, 1991 VAT RULING NO. 072-91 Sycip, Gorres, Velayo and Co. Certified Public Accountants P.O. Box 589, Manila Central Post Office 1099 Manila Attention: J . A . Osana Tax Division S i r s : This refers to your letter dated February 19, 1991 requesting on behalf of your client, Our Blessed Mother of Victory Mission Foundation confirmation that it is exempt from the Value Added Tax on relief goods and equipment which it received from foreign institutions abroad. It is represented that Our Blessed Mother of Victory Mission Foundation, Inc. is a non-stock, non-profit orphanage organized for the purpose of promoting the social and economic welfare of less fortunate children, such as the out-of-school youth, the abandoned and neglected children living on the street; that said institution receives donations in the form of relief goods and equipment from foreign institutions; and that said relief goods have no commercial value. In reply, please be informed that as a non-stock, non-profit organization, Our Blessed Mother of Victory Mission Foundation is exempt only from income tax on income received by it as a social welfare organization under Section 26(g) of the NIRC and is not exempt from other taxes. As such the imported relief goods and equipment received as donation from abroad by said Foundation are subject to the 10% VAT pursuant to Section 101 of the Tax Code, as amended. llcd Very truly yours, JOSE U. ONG Commissioner of Internal Revenue