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September 12, 2005VAT RULING NO. 017-05106 RMC 74-99Yazaki-Torres Manufacturing, Inc.1043 Zobel Roxas cor. Bautista StreetsSingalong, ManilaAttention: Fe H. BiscochoDepartment HeadGeneral Accounting DepartmentGentlemen :This refers to your letter dated April 6, 2005 requesting for a ruling on the manner by which your company, Yazaki-Torres Manufacturing, Inc. (YTMI), shall treat the input VAT specifically on the period prior to the entitlement of 5% Gross Income Tax (GIT) incentive. It is represented that YTMI was registered on June 10, 2002 with the Philippine Economic Zone Authority (PEZA) as an Ecozone Export Enterprise. Prior to its registration with PEZA, YTMI has an existing registration with the BOI on a Non-Pioneer status. The major tax incentives of YTMI expired in September 1998, thereafter, it have been paying the normal rate of 32% for its corporate (income) tax and levied the normal taxes and duties for the imported machineries and equipment.In addition, YTMI is VAT registered and its entitlement under BOI for its input VAT on local purchases are realized thru tax credit on the excess input VAT. Under the PEZA...