VAT Ruling No. 075-88

March 29, 1988 VAT RULING NO. 075-88 103 (v)-000-00-075-88 Ernesto Duran Lim, Duran & Associates Suite 600-604 Phil. Savings Bank Bldg. Ayala Avenue, Makati, M.M. S i r : In reply to your letter dated February 29, 1988, wherein you wrote in behalf of your client PHILTEC METALS INC., which would like to request for an exemption from the requirements relative to the value-added tax. cdll In reply, please be informed that regardless of whether your client is registered or not with the Board of Investments (BOI), its sale of gold to the Central Bank of the Philippines is already considered export sale by virtue of E.O. 587. In this connection, such export sale is exempt from the value-added tax pursuant to Sec. 103(v) of the NIRC as amended by Sec. 273. On the other hand, as an exempt transaction your client's export sale can automatically be subject to zero rate upon approval of its registration for VAT purposes. In such case, it is entitled to claim a refund of the value added taxes (input tax) imposed on your client's purchases of raw materials or services directly related to its business of refinery and trading of gold to Central Bank. Such refund can only be effected if your client fulfills the requirement of filing a quarterly VAT return within 20 days at the end of the quarter indicated in the VAT registration certificate. llcd Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner