VAT Ruling No. 095-92

July 29, 1992 VAT RULING NO. 095-92 NIRC Sec. 100 Precedent Ruling 000-00 Marble Corporation of the Philippines Office 2, Fema Street Quezon City Attention: Corazon L. Sinco Vice-Pres. & Gen. Mngr. M a d a m : This has reference to your letter dated January 22, 1992. As represented, your company is a BOI-registered manufacturer of marble products both for the domestic and export markets. Consequently, you have a Japanese customer having his own trading and export firm who placed an order with you. Said order was to be shipped in one exclusive container direct from your plant to the pier for export. Furthermore, your Japanese customer is willing to furnish your company with the Central Bank Export License and Bill of Lading (BL) of the shipment which indicates exactly the same items. Based on the foregoing, you now request for a ruling on whether or not the CB export License and BL be enough to consider the transaction zero-rated. In reply, please be informed that since your company is not the direct exporter of the goods concerned, your sale to your Japanese customer cannot be considered as an export sale and hence cannot be subject to 0% VAT. Rather, such sale is considered as a local sale and thus subject to 10% VAT in accordance with Section 100 of the Tax Code. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue