VAT Ruling No. 073-92

June 2, 1992 VAT RULING NO. 073-92 NIRC Sec. 103 (u) BIR Ruling No. 133-90 Abenson Benito Bldg., No. 11 Sheridan St. bet. Pioneer and Pines Sts. Mandaluyong, Metro Manila Attention: Ms. Josephine Gomez Corporate Services Manager M a d a m : This has reference to your letter dated May 31, 1991 requesting for a ruling on the procedures to be observed regarding sales to VAT-exempt entities. aITECD In reply, please be informed that pursuant to Revenue Regulations No. 10-89 amending Section 9(b)(16) of Revenue Regulations No. 5-87, persons claiming exemption from VAT on their purchase of goods and services shall submit a copy of the special legislation or international agreement which exempts him from VAT to the Commissioner of Internal Revenue or his authorized representative. Moreover, pursuant to Revenue Regulations No. 6-89, he shall also present four (4) copies of the VAT invoice required to be issued by the seller on its sales to entities which are exempt under International Agreements. The amount of sale stated in the invoice must be net of the VAT. In proper cases, the claim shall also be accompanied by the recommendation of the Department of Foreign Affairs. Upon determination that the claimant is entitled to the exemption, a certificate of exemption (copy attached) shall be issued to the grantee in triplicate: original copy to be given to the seller of the goods and services; the duplicate to the grantee; and the triplicate to be retained with the BIR Office. Before such copies of the certificate given to the grantee, all copies of the invoice shall be stamped with the words "VAT Exempt-Seller Not Entitled to Input Tax." The sale covered by the exemption certificate shall be reported by the seller in his VAT return as exempt sales, and in support thereof, the original of the certificate shall be attached to his return. Please be guided accordingly. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue