BIR Ruling

April 13, 1976 The Commissioner Bureau of Customs Manila S i r : This refers to your letter dated March 22, 1976 requesting that Authority to Release Imported Goods No. BT-76-1916 dated January 27, 1976 issued by the Chief, Intelligence Division of this Office, authorizing the release of five (5) and eight (8) gallon vacuum cleaners upon payment of the 7% advance sales tax, be reviewed and that a delineation be made that ten (10) gallon and above vacuum cleaners be considered industrial type and below the ten (10) gallon be classified as household vacuum cleaners. cdi In reply, I have the honor to inform you that Section 185(i) of the Tax Code imposes a 40% sales tax on household type electric vacuum cleaners. In other words, only household type vacuum cleaners are subject to the tax therein imposed. Industrial vacuum cleaners are subject only to the 7% sales tax. It appearing in the brochures of the five (5) and ten (10) gallon vacuum cleaners that they are used in industrial establishments like hotels, restaurants, hospitals and big buildings, it is the opinion of this Office, that they are subject only to the 7% advance sales tax. aisa dc Very truly yours, CONRADO P. DIAZ Acting Commissioner of Internal Revenue TAN-1182-568-4