BIR Ruling

November 27, 1972 Avenue Electrical Supply Co. P. O. Box 2142 Manila Gentlemen : This refers to your letter dated November 4, 1972 requesting authority to withdraw your shipment of industrial vacuum cleaners from customs custody upon payment of the 7% advance sales tax with a 25% mark-up. In reply, I have the honor to inform you that under Section 185(i) of the Tax Code household type of electric vacuum cleaners are subject to the 40% sales tax. However, it appearing in the brochure submitted that the vacuum cleaners imported are of the 6, the 9 and 12 gallons type, then the same would not come under the category of household type,. but are considered industrial type. Such being the case, the imported industrial type vacuum cleaners are subject only to the 7% advance sales tax based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue