VAT Ruling No. 077-90

March 23, 1990 VAT RULING NO. 077-90 101-000-00-077-90 Zeta International Trading Corp. 1469 C.M. Recto Ave. Manila Attention: Mr . Ernesto S . Ong Officer-in-Charge Dear Sirs : This has reference to your letter dated October 11, 1989 requesting clarification as to the rate and basis of the advance sales tax applicable to your business of importing laminated sheets (also known as "Formica") from Japan and Korea. In reply thereto, please be informed that the advance sales tax has been replaced by the value-added tax pursuant to Executive Order No. 273. Accordingly, under Section 101 of the Tax Code, as amended by E.O. No. 273, the value-added tax on the importation of goods is equivalent to 10% based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties, excise taxes, if any, and any other charges to be paid by the importer prior to the release of such goods from customs custody. However, if the customs duties are determined on the basis of the quantity or volume of the goods, the value-added tax shall be based on the landed cost plus excise taxes, if any. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue