VAT Ruling No. 086-90

April 5, 1990 VAT RULING NO. 086-90 104 (a) (1)-000-00-086-90 Atty. Luis P. Velasco 1668 Dasmarias Village Makati, Metro Manila S i r : This refers to your letter dated February 12, 1990, wherein you represented that your client, Papercon Philippines Inc., which is a manufacturer of cardboard boxes, paper converters and cartons, purchased from VAT-registered dealers of building materials for the construction of its warehouse for the storage of its manufactured products. Based on the foregoing facts, you are now inquiring if your client is entitled to a tax credit on the input taxes paid on the purchase of building materials. cdt In reply, please be informed that your client is entitled to a tax credit on the input taxes on its purchases of building materials used in the construction of its warehouse against its output tax on the sale of its manufactured products [Section 104(a)(l) of the Tax Code as amended] provided that: (a) the construction/building materials are purchased from a VAT registered seller; (b) a VAT invoice bearing the name and address of your client, was issued by the seller; (c) the warehouse/bodega which was constructed out of the said building materials, is exclusively used in the VAT registered activity of your client. Very truly yours , JOSE U. ONG Commissioner of Internal Revenue