VAT Ruling No. 105-99

October 15, 1999 VAT RULING NO. 105-99 Sec. 110 (A) (3) (b)-000-00-105-99 Amway Philippines Multinational Bancorporation Centre 6805 Ayala Avenue, 1269 Makati City Attention: Mr . Henry Marquez Accounting Manager Gentlemen : This refers to your letter dated January 18, 1999 concerning your request for information whether the additional 10% value-added tax (VAT) imposed by the Bureau of Customs on your importation may legally be considered as your creditable input tax notwithstanding that you have disputed the validity of such additional assessment and only paid the same under protest. In reply, please be informed that the term "' input tax' means the value-added tax due from or paid by a VAT-registered person in the course of his trade or business on importation of goods or local purchase of goods or services . . . ." (Sec. 110(A)(3)(b), NIRC of 1997). The VAT on importation may only be treated due or paid if the importer's liability therefor is not at issue. Thus, in case the imposition of the VAT on such importation is protested by the importer, in which case, it becomes a disputed assessment, the importer's liability for the VAT paid under protest is merely contingent, hence, not yet final. Because of this, the importer may not legally treat as input tax such amount of VAT which, however, he paid under protest. Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue