January 26, 1988

VAT RULING NO. 006-88

103 (a) (w)-000-00-006-88

Juan L. Torres
Certified Public Accountant
Rm. No. 4, Luy Kim Guan Bldg. No. 1
Mayor Climaco Ave., Zamboanga City

S i r :

In reference to your letter dated October 21, 1987 regarding clarification on certain sections of Executive Order No. 273, I have the honor to state the following comments thereon:

1. The figures of P100,000 as minimum and P500,000 as maximum refer to the range within which the basis for exemption (P200,000 below) falls.

2. If the seller of goods or services has an annual gross sales on receipts of P200,000 and below and have not opted to be VAT-registered, he will be subject to the 2% tax. cdtech

3. Copra dealers are exempted from the VAT by copies of the attached letter by Commissioner Tan of the BIR dated January 8, 1988 to Chairman Romero of the Philippine Coconut Authority.

Very truly yours,

BIENVENIDO A. TAN, JR.
Commissioner of Internal Revenue