VAT Ruling No. 111-88
VAT Ruling No. 111-88 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Apr 25, 1988
Full text
April 25, 1988 VAT RULING NO. 111-88 102-000-00-111-88 Mr. Rolando C. Quindoy Asst. Manager, Operations & Marketing CENTRO-TECH SYSTEMS Rm. 810 Ortigas Building Ortigas Avenue, Pasig, M.M. S i r : In reply to your letter dated April 21, 1988, please be informed that the basis of the 10% value added tax prescribed in Section 102 of the Tax Code, as amended by Executive Order 273, is the gross receipts of the person rendering service. Hence, in the hypothetical case presented in your aforesaid letter, the value added tax is computed on the total composition of your billings i.e., due to employees, due the government, depreciation of equipment (billed to clients), supplies, and administrative overhead. cdtech Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue
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