VAT Ruling No. 102-99

September 1, 1999 VAT RULING NO. 102-99 Sec. 106-108-066-99-102-99 Diaz, Murillo Dalupan Certified Public Accountants 5th Floor, Don Jacinto Bldg. Dela Rosa corner Salcedo Sts. Legaspi Village, Makati City Attention: Mr . Millard M . Manseguiao Managing Director Gentlemen : Referring to your letter dated August 17, 1999 for and in behalf of your client, HOYA LENS PHILIPPINES, INC ., please be informed that Sections 1 and 2 of Revenue Regulations No. 8-99, implementing Sections 106 and 108 of the National Internal Revenue Code of 1997, provide: "SEC. 1. Scope . All VAT-registered taxpayers who are required under Section 237 of the 1997 Tax Code to issue receipts or sales or commercial invoices are no longer allowed to separately bill the value-added tax corresponding thereto. The amount appearing in the sales invoices/receipts is thus deemed inclusive of the value-added tax due thereon. SEC. 2. Penalty . Failure or refusal to comply with the requirement in Section 1 hereof shall, upon conviction, for each act or omission be punished by a fine of not less than One thousand pesos (P1,000.) but not more than Fifty thousand pesos (P50,000.) and suffer imprisonment of not less than two (2) years but not more than four (4) years. In view of the foregoing, your request that your client be authorized to issue VAT invoices showing separate billing of the VAT cannot be granted for lack of legal basis. Very truly yours, Commissioner of Internal Revenue By: (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal & Enforcement Group