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Unformatted text preview: de prior to its enactment.
Executive Order No. 273 stated that any person who, in the course of trade or business,
sells, barters or exchanges goods and services, was already liable to pay VAT. The
present law merely stresses that even a nonstock, nonprofit organization or government
entity is liable to pay VAT for the sale of goods and services.
Section 108 of the National Internal Revenue Code of 1997 defines the phrase
"sale of services" as the "performance of all kinds of services for others for a fee,
remuneration or consideration." It includes "the supply of technical advice, assistance or
services rendered in connection with technical management or administration of any
scientific, industrial or commercial undertaking or project."
On February 5, 1998, the Commissioner of Internal Revenue issued BIR Ruling
No. 010-98 emphasizing that a domestic corporation that provided technical, research,
management and technical assistance to its affiliated companies and received payments
on a reimbursement-of-cost basis, without any intention of re...
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This document was uploaded on 02/09/2014.
- Spring '14