VAT Ruling No. 080-89

April 3, 1989 VAT RULING NO. 080-89 Amarican Express Intentional, Inc. 4th Floor, ACE Bldg., Rada cor. Dela Rosa Streets, Legaspi Village, Makati, Metro Manila Attention: Spencer F . Lenhart Vice-President & Gen . Manager S i r s : This refers to your letter dated January 27, 1989 requesting that your sale of service be qualified for zero rating which shall be effective January 1, 1988. It is represented that your Philippine office (AEII Philippines) is a servicing unit of American Express Company (AMEX) and whose function is primarily to facilitate collection of AMEX receivables from cardmembers by receiving the bills of service establishments in the Philippines and forward the same to its Regional Operating Centers (ROC) which in turn will collect from the cardmembers. The service that you perform for the ROC is paid for in US Dollars inwardly remitted through the banking system and accounted for by the Central Bank of the Philippines. In reply, please be informed that, as a VAT registered entity whose service is paid for in acceptable foreign currency which is remitted inwardly to the Philippines and accounted for in accordance with the rules and regulations of the Central Bank of the Philippines, your service income is automatically zero rated effective January 1, 1988. [Section 102(a) (2) of the Tax Code as amended]. For this, there is no need to file an application for zero-rate. cdlex Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner