November 3, 2006
VAT RULING NO. 011-06
R.A. 9337
Philippine Ports Authority
Marsman Building, 22 Muelle De San Francisco
South Harbor, Port Area
Manila 1018
Attention: Ms. Aida P. Dizon
Assistant General Manager
Finance & Administration
Gentlemen :
This is to clarify the value-added tax (VAT) liability of the Philippine Ports Authority (PPA) on its various transactions.
It is represented that PPA is a government-owned or controlled corporation and a VAT-registered taxpayer; that as such, all its fees and charges covering its sale of services and use or lease of properties are subject to VAT, and which it may legally shift to its port-users or customers and remit the same to this Bureau; and that several issues were raised by the clientele/customers of PPA in the imposition of VAT on their respective transactions.
In reply, please be informed as follows:
It is clear from Revenue Memorandum Circular No. 2-2004 1 under the heading, "VAT Liability of the Philippine Port Authority", all fees and charges collected by the PPA such as, but not limited to the following, are subject to VAT:
1. Port Dues (Harbor fees)/Anchorage fees
2. Dockage-Berthing Income
3. Usage...
