1988

VAT RULING NO. 276-88

100-000-00-276-88

Mr. Alfredo A. Alday

Finance Manager
Pocketbell Philippines, Inc.
Pocketbell House, 784 Aurora Blvd.
Cubao, Quezon City

Sir:

This refers to your letter dated 20 February 1988 seeking clarification on the
following issues, to wit:

a) Whether or not deposits of your subscribers are subject to the

value-added tax (VAT)

b) Whether or not proceeds from sale/disposal of operating

equipments are subject to the VAT. cdtech

In reply, please be informed as follows:

1) The deposits received from your subscribers are not subject to the
10% VAT if such deposits take the form of security or collateral
but which are refundable upon the termination of the service.
However, if any of these deposits are forfeited, such amount shall
be subject to VAT.

2) The proceeds from sales/disposal of operating equipments, are

subject to the Value-Added Tax pursuant to Sec. 100 of the Tax
Code, as amended by EO 273.

Very truly yours,

Copyright 2020 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia First Release 2020 1
 EUFRACIO D. SANTOS
Deputy Commissioner

Copyright 2020 CD Technologies Asia, Inc. and Accesslaw, Inc. Philippine Taxation Encyclopedia First Release 2020 2