VAT Ruling No. 100-89

May 29, 1989 VAT RULING NO. 100-89 Mr. Rodulfo T. Ong RJ Homes The Appliance Plaza A. Pichon St., Davao City S i r s : This has reference to your letter dated July 19, 1988 requesting for a ruling on the basis of the computation of the value-added tax (VAT) for merchandise sold on installment in line with your business as a retail dealer of appliances. In reply, please be informed that the 10% output VAT on merchandise sold on installment is based on the gross selling price agreed upon at the time pursuant to the definition under Section 2(k) of Revenue Regulations No. 5-87. Furthermore, the monthly installments including increments for late payments shall not be included as part of gross selling price during the quarter in which such installments are actually paid. Any input tax corresponding to such sales may then be credited against the output tax computed. aisadc This finds support in VAT Ruling No. 077-89. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue