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August 26, 2005VAT RULING NO. 016-05101 Sec. 4.102-1 (b)SyCip Gorres Velayo & Co.6760 Ayala Avenue1226 Makati CityAttention: Joel L. Tan-TorresTax DivisionGentlemen :This refers to your letter dated December 8, 2003 requesting on behalf of your client, ABS-CBN Broadcasting Corporation, for confirmation of your opinion that the withholding VAT paid by ABS-CBN to the Bureau of Internal Revenue in the taxable year 2003, arising from royalties paid to non-residents in 2001 and 2002; may be claimed as input VAT in the taxable year 2003, when if filed the tax return and paid the corresponding withholding VAT thereon. It is represented that ABS-CBN Broadcasting Corporation (ABS-CBN) is a VAT-registered entity engaged primarily in broadcasting; that during the years 2001 and 2002 it paid royalties to foreign non-resident licensors; that it failed to file withholding VAT declaration/returns for the aforementioned periods and failed to remit the corresponding VAT on behalf of the non-resident foreign licensors; and that ABS-CBN paid the 10% withholding VAT and filed the appropriate returns on these royalties during the taxable year of 2003.In reply,...