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January 28, 2009VAT RULING NO. 002-09Section 108 (B) (4) NIRC,as amended; 054-2003Davao Pilots Association, Inc.J.P. Cabaguio Avenue, Davao CityAttention: Capt. Vicente A. LaguraPresidentGentlemen :This refers to your letter dated November 23, 2006 seeking opinion on whether the services rendered by the Davao Pilots Association, Inc. (DPAI) to foreign vessels are still subject to zero percent (0%) value-added tax (VAT) under Section 4.108.5 (b) (4) of the Revenue Regulations (RR) No. 16-2005. IAEcCaIt is represented that DPAI provides pilotage services and launch services to both coastwise and foreign vessels in the pilotage district of Davao; that the request for pilotage service is forwarded to DPAI by the shipping agent of the vessel in the Philippines; that the Harbor Pilot boards the vessel and renders the required service and prepares a chit containing the details of the vessel, date of rendering the pilotage service, number of hours spent and other information; that the chit is signed by the master of the vessel and is used as basis for billing; that the billing invoice is addressed to the...