VAT Ruling No. 088-91

November 8, 1991 VAT RULING NO. 088-91 Section 101(a)/000-00/088-91 Ophthalmological Foundation of the Philippines, Inc. 10th Floor, Ramon Magsaysay Center Roxas Boulevard, Manila Attention: Ms . Benita M . Santos S i r s : This refers to your letter dated January 16, 1991, addressed to the Office of the President, requesting exemption of your shipment of specialized eye surgical equipment from the Value-Added Tax (VAT). It is represented that Ophthalmological Foundation of the Philippines, Inc. (OFPHIL), is a non-stock, non-profit entity, registered as a tax-exempt foundation under this Office; that in order to carry out effectively its primary objectives, OFPHIL purchases imported surgical instruments and equipment which are installed and used at the Philippine General Hospital (PGH); that OFPHIL's future plans include setting up another specialized eye surgery facility at private or other government hospitals in order to maximize the accessibility to as many local doctors and Filipino patients; and that OFPHIL retains ownership of the aforesaid equipment and remains responsible for repairs and maintenance of the same. In reply, please be informed that your request cannot be granted for lack of legal basis. Section 103 of the Tax Code enumerates the importations exempt from VAT; and, since your case does not fall under any of the enumerations, your importations of specialized eye surgical equipments are subject to the 10% Value-Added tax pursuant to Section 101 of the same Code. Please be guided accordingly. cdtech Very truly yours, JOSE U. ONG Commissioner of Internal Revenue