April 23, 2007
VAT RULING NO. 006-07
Sec. 105 & 108 G.R. No. 125355
Mr. Bienvenido A. Tan, Jr.
Unit 7A, The Valero Tower
122 Valero Street
Salcedo Village, Makati City
S i r :
This refers to your letter dated June 30, 2006 requesting for a ruling on whether or not the processing fee and annual fee being charged by Philippine Council for NGO Certification (PCNC) are subject to value-added tax (VAT).
In reply, please be informed that pursuant to the Memorandum of Agreement dated January 29, 1998 executed by and between the Secretary of Finance and PCNC's Interim Chairman, the PCNC was duly designated by the Secretary of Finance to accredit non-stock, non-profit organizations/corporations.
However, Section 105 of the Tax Code of 1997 provides that any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports goods shall be subject to the VAT imposed in Sections 106 to 108 of the same Code.
The phrase "in the course of trade or business" means the regular conduct or pursuit of a commercial...
