VAT Ruling No. 099-89

April 13, 1989 VAT RULING NO. 099-89 Scanmar Maritime Service, Inc. 2303 Pasong Tamo Extension, Makati Metro Manila Attention: Mr . Edgardo J . Canoza VP & Treasurer S i r s : In reply to your letter dated March 15, 1989 , please be informed that since you are a VAT registrant, the service income derived from your manning and crewing services rendered to vessels is automatically subject to zero-rate provided that such income is paid for in foreign currency inwardly remitted in accordance with Central Bank sales and regulations (Section 102 (a)(2) of the National Internal Revenue Code (NIRC), as amended by Executive Order 273). Thus, there is no need to seek prior approval of an application for zero rate. However, you are still required to file a quarterly VAT return which will be used as basis for a refund of input taxes that you have paid to your supplier of goods and services in connection with your zero-rated activity. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue