October 29, 2004
VAT RULING NO. 030-04
106 (A) (2) (b)
Infophil, Inc.
106 Neptune Street, Bel-Air
Makati City
Attention: Mr. Eric Tomacruz
Gentlemen :
This refers to your undated letter clarifying the kind of services your company renders in connection with your request for VAT exemption.
It is represented that your company provides services broken down into three major components such as, online shopping mall and delivery service wherein clients can purchase gifts, flowers and other items online while they are situated outside the country, and deliver to their relatives here in the Philippines, providing free on-line services to web-surfing consumers, and media to businesses who wish to advertise to those consumers; that a large majority of your users and members are the U.S. based, all of your paying advertisers are also clients of North America; that all the income you collect from said clients are in U.S. Currency to ease purchases on the client's part; and that all payments made for these are made through credit card charging.
In reply, please be informed that Section 106(A)(2)(b) of the Tax Code of 1997...
