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    Vat Ruling No. 444-88

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    Joahnna Paula Corpuz
    Philippine Shipyard inquired whether sales from their planned company consumer store selling basic commodities at cost could be zero-rated for VAT purposes. The BIR ruled that the sales could not be zero-rated as they did not meet the conditions of Section 100(a), even though there would be no profit or value added. Instead, as Philippine Shipyard would be selling goods as part of their business, they fell under the definition of persons liable to VAT under Section 99.

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    Vat Ruling No. 444-88

    Uploaded by

    Joahnna Paula Corpuz
    29 views1 page
    Philippine Shipyard inquired whether sales from their planned company consumer store selling basic commodities at cost could be zero-rated for VAT purposes. The BIR ruled that the sales could not be zero-rated as they did not meet the conditions of Section 100(a), even though there would be no profit or value added. Instead, as Philippine Shipyard would be selling goods as part of their business, they fell under the definition of persons liable to VAT under Section 99.

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    Philippine Shipyard inquired whether sales from their planned company consumer store selling basic commodities at cost could be zero-rated for VAT purposes. The BIR ruled that the sales could not be zero-rated as they did not meet the conditions of Section 100(a), even though there would be no profit or value added. Instead, as Philippine Shipyard would be selling goods as part of their business, they fell under the definition of persons liable to VAT under Section 99.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    29 views1 page

    Vat Ruling No. 444-88

    Uploaded by

    Joahnna Paula Corpuz
    Philippine Shipyard inquired whether sales from their planned company consumer store selling basic commodities at cost could be zero-rated for VAT purposes. The BIR ruled that the sales could not be zero-rated as they did not meet the conditions of Section 100(a), even though there would be no profit or value added. Instead, as Philippine Shipyard would be selling goods as part of their business, they fell under the definition of persons liable to VAT under Section 99.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    VAT RULING NO.

    444-88

    FACTS:

    Philippine Shipyard and Engineering Corp. through its Internal auditor wrote to BIR,
    informing the latter about its plan to establish a company consumer store where basic
    commodities will be sold at cost. The projected sales per year was approximately P 2.5
    million. Panlilio inquired to the BIR whether the sales can be zero-rated considering that
    as a seller at cost, there would be no value-added to the goods.

    ISSUE:

    WON the sales in the consumer store should be zero-rated. (No)

    RULING:

    BIR ruled that the proposed sale transactions cannot qualify for zero rating since it does
    not meet the conditions set under Section 100(a) of the Tax Code as amended by E.O.
    273. Instead, Philippine Shipyard’s activity, in spite of the absence of profit and value-
    added to the goods, can be classified as one to be undertaken by persons liable to VAT
    under Section 99 of the Tax Code as amended states that: "Any person, who in the course
    of trade or business sells, barters or exchanges goods, renders services or engaged in
    similar transactions and any person who imports good shall be subject to value-added
    tax"

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