VAT Ruling No. 073-90

March 23, 1990 VAT RULING NO. 073-90 Pacific Adjustment Co., Inc. 3rd Flr. Bank of P.I. Office Condominium Plaza Cervantes, Manila Attention: Mr . Nestor D . Laig Asst . General Manager Gentlemen : This refers to your letter dated November 29, 1989 stating that on September 13, 1989 at about 2:30 p.m., A.M. Acero Trading Corporation, a trucker hauled 1456 cartons of Bonna from Wyeth Suaco Laboratories, Inc. and are for delivery to Mercury Drug Store in Libis, Quezon City; that while on the way, it was hijacked by still unidentified culprits; and the goods are properly covered by Wyeth Suaco Sales Invoice No. 0135118 (dated September 20, 1989) with provisions for VAT. In this connection, you now request for a ruling if Wyeth Suaco is liable to pay the 10% VAT on the hijacked goods. In reply, please be informed that under Section 100 of the Tax Code, the value-added tax is levied on the sale of goods and on certain "transactions deemed sale". Since the hijacked goods were neither actually sold nor do they fall under the "transactions deemed sale", Wyeth Suaco is not liable for the value-added tax. aisadc Very truly yours, JOSE U. ONG Commissioner of Internal Revenue