August 26, 2005
VAT RULING NO. 013-05
Sec. 237 of the Tax Code of 1997 Sec. 2.57.2 (A) (5)
Espiritu * Caballa * Makalintal
Associates and Company
2nd Floor Unit I, Isabel Bldg.,
Zabarte Road, North Olympus, Q.C.
Attention: J. Antonio B. Espiritu
Gentlemen :
This refers to your letter dated May 26, 2003 requesting clarification on whether life insurance agents are required to issue official receipts for the commissions they earn in selling insurance policies.
It is represented that all life insurance agents are required to file a Certification of Registration as value-added tax (VAT) taxpayer; that these agents were mandated by their respective Revenue District Office to print official receipts (OR), by referral in the VAT law, as registered agents of professional insurance brokers; that insurance companies only submit to the agents BIR Form No. 2307 (Certificate of Creditable Withholding Tax Withheld at Source).
Based on the above representations, it is your opinion that the agents should not be required to issue OR on the commissions they earn in selling insurance policies, otherwise, they will be placed in equal footing with insurance brokers,...
