VAT Ruling No. 102-90

May 3, 1990 VAT RULING NO. 102-90 107 (d)-205-89-102-90 Mr. Thomas S. Ko Din TKD Ingre-Foods Enterprises 4818 Solohuaga cor. F. Nazario Makati, Metro Manila Dear Sir : This refers to your letter dated February 12, 1990 requesting for the reconsideration of VAT Ruling No. 205-89 wherein you were advised that you can only cancel your optional VAT registration after a lapse of two years. LLjur As represented, you were made to register as VAT person under the optional VAT registration, the consequences of which were not explained by our revenue district office in Makati specifically on your being subject to 10% VAT on your sale of VAT exempt agricultural food products. As can be gleaned from your application for VAT registration you did not signify your intention to optionally become a VAT registrant as evidenced by your failure to mark the appropriate box on the "Activities you opt to Register" Column. On the basis of the foregoing facts, you would like to request that you be reverted back to your exempt status (even before the lapse of the two year period) for the following reasons: (1) On the basis of your VAT Registration, you have been complying with the requirements of the VAT law by paying the 10% VAT from January 1, 1988 up to your latest quarter (December 1 to February 28, 1990). (2) Your agricultural products have already been ruled (by virtue of VAT Ruling No. 205-89) to have retained their original state inspite of repacking in plastic bags. In reply, please be informed that the optional VAT registration provided under Section 107(d) of the Tax Code, as amended, is premised upon a voluntary exercise of the option by the registrant. If, as represented, you did not signify your intention and were not duly informed about the legal consequence of said registration, it follows that your registration was involuntary. Accordingly, the requirement under Section 19 of RR 5-87, i.e. cancellation of an optional VAT registration, may be made only after two years, does not apply. Rather, you may apply for cancellation of said involuntary and erroneous VAT registration as well as your VAT invoices. LLphil Very truly yours, JOSE U. ONG Commissioner of Internal Revenue By: VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer-In-Charge)