VAT Ruling No. 073-99

July 27, 1999 VAT RULING NO. 073-99 105 062-99 073-99 Marina Bayhomes Condominium Corporation Atlantic Avenue, Asiaworld Compound Bgy. Tambo, Paraaque City Attention: Mr . Romy A . Valerio Village Administrator Gentlemen : This refers to your letter dated June 21, 1999 concerning your request for information whether your corporation, which is a non-stock, non-profit association of homeowners, may be passed on with the 10% value added tax on its purchases from VAT-registered suppliers. cdll In reply, please be informed that the 10% VAT is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services . . . . (Sec. 105, NIRC of 1997, as amended by R.A. 7716 and as renumbered by R.A. 8424). Since there is no showing that your corporation is exempt from indirect tax under any existing law, your VAT-registered suppliers of goods, properties or services are subject to the 10% VAT which shall accordingly be passed on to you, as an indirect tax and as part of the invoice price of your purchases. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Local & Enforcement Group