VAT Ruling No. 091-88
VAT Ruling No. 091-88 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 24, 1988
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March 24, 1988 VAT RULING NO. 091-88 Mr. C.T. Bermuda Jr. SICAF Enterprises P.O. Box AC-191 Quezon City S i r : This is in reply to your letter regarding the taxation of your import goods for resale. Please be informed that the amount that appears as compensating tax in the receipt issued by the Bureau of Customs corresponds to the 10% value-added tax. Pursuant to E.O. 273, the value-added tax replaces the compensating tax effective January 1, 1988. Relative to your request, below is a sample computation for the value-added tax due from an importation of $1,000.00; ($1,000 x P21.025 * = P21,025.00) and an assumed sale with a P2,000 assumed mark-up. cdtech IMPORTER SALES TAX CREDIT TAX DUE Landed Cost: P21,025.00 VAT (10%): 2,102.50 P2,102.50 Total cost 23,127.50 Cost (Excl. tax) P21,025.00 Assumed mark-up: 2,000.00 Selling Price (Excl. tax) P23,025.00 VAT (10%): 2,302.50 P2,102.50 P300.00 Selling price to Mft'r. (incl. Tax) P25,327.50 Please be guided accordingly. Very truly yours, EUFRACIO D. SANTOS Deputy Commissioner Footnotes * Official foreign exchange rate as of March 8, 1988.
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