VAT Ruling No. 072-97

December 15, 1997 VAT RULING NO. 072-97 100 (a) (1); 000-00; 072-97 Princess Erlana Corporation 2652 Jesus Ext., Pandacan M a n i l a Attention: Princess Erlana G . Inocencio President Gentlemen : This refers to your letters dated February 5 and 27, 1997 requesting for clarification as to whether or not your intended export shipment of gold bars, under an Export Declaration and without need of an approval from the Bangko Sentral ng Pilipinas, is subject to export duties or is VAT exempt. cd You stated that you intend to purchase the gold bars from owners/finders who may have discovered the same by chance or by treasure hunt in their own private properties; that the gold bars would be in the nature of an incidental export product, not expressly produced or manufactured under a continuous and established bona-fide activity but available only if found or discovered; and that the shipment may be by air carrier either in Manila or thru any of the airports in Mindanao, Visayas or Luzon. In reply, please be informed that pursuant to Section 100(a)(1) of the Tax Code, as amended by R.A. No. 7716 and as further amended by R.A. 8241, your export sale of gold bars shall be subject to VAT at 0%. This means that although the said export sale is a taxable transaction, the same shall not result in any output tax on the purchases of goods relative to such zero-rated sale shall be available as tax credit or refund. As regards your query on the rate of export duties for exported goods which you claimed has been abolished by Executive Order No. 26, it is suggested that you consult the Commissioner of Customs who has jurisdiction on the matter. cdLL Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue