BIR Ruling [DA-030-00]

January 12, 2000 BIR RULING [DA-030-00] Central Azucarera de Tarlac Jose Cojuangco & Sons, Inc. General Managers Tarlac City, Tarlac Attention: Mr . Nereo C . Mendoza Vice-President, Finance Gentlemen : This refers to your faxed letter dated December 2, 1999 requesting confirmation of the tax exempt status of CAT Planters Cooperative Marketing Association, Inc ., a primary marketing cooperative duly registered with the Cooperative Development Authority (CDA) and the Philippine Sugar Commission. In reply, please be informed that BIR Ruling No. 025-99 dated January 15, 1999 is still valid. Consequently, CAT Planters Cooperative Marketing Association, Inc. remains exempt from VAT on its (1) sales to members, as well as sale of its produce, whether in its original state or processed form, to non-members; (2) importation of direct farm inputs, machineries and equipment, including spareparts thereof to be used directly and exclusively in the production and/or processing of its produce, pursuant to Section 109 (r) of the Tax Code of 1997; and (3) the 3% gross receipts tax imposed under Section 116, also of the Tax Code of 1997. LexLib However, CAT Planters shall be liable to the 10% VAT which might be passed on or billed by the seller/vendor as part of cost of the goods purchased by it. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal and Enforcement Group