VAT Ruling No. 074-02

November 4, 2002 VAT RULING NO. 074-02 105 VAT Ruling 066-2001 Astrobag Mfg . Corp . 5 Lamco St., Lawang Bato Valenzuela, Metro Manila Attention: Ms . Mary Jane Yang S i r : This refers to your letter dated September 11, 2002, requesting for exemption from the value added tax on your sale of goods to Philphos Multi-Purpose Employees Cooperative, Inc., a cooperative duly registered with the Cooperative Development Authority under R.A. No. 6938, otherwise known as the Cooperative Code of the Philippines. In reply, please be informed that your request can not be granted for lack of legal basis. The VAT is the statutory liability of the seller of goods and services. However, 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) Since cooperatives, whether or not registered with the CDA, do not enjoy exemption from indirect taxes, they are liable to shoulder the burden of the passed-on VAT on their purchases of goods and services. (VAT Ruling No. 066-2001) Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group