(BIR Ruling No.

113-98 dated July 23, 1998)

VAT; Isolated Sale of Microwave Backbone Transmission network - The sale of a

microwave backbone transmission network by Liberty Broadcasting Network, Inc., a domestic
corporation holding a congressional franchise to provide the public with wireless radio
communication services and to operate radio communication stations nationwide, to another
wireless communications carrier, being an isolated transaction, is not in the course of its trade or
business of selling communication services. Thus, not subject to VAT. Moreover, the subject
sale shall not result in any input tax credit to the buyer. (BIR Ruling No. 113-98 dated July 23,
1998)