BIR Ruling [DA-121-98]

March 26, 1998 BIR RULING [DA-121-98] Shuttle, Trade Food Corporation 801 Katarungan Street Mandaluyong City Attention: Ms . Divina Pedrosa General Manager Gentlemen : This refers to your letter dated September 5, 1997 requesting that your importation of fresh fruits and fresh, chilled and frozen meat of swine be exempt from the payment of the value-added tax. aisadc You have represented that you are a domestic corporation primarily dealing with the sale of fresh fruits and of fresh, chilled and frozen meat of swine for our local market; and that you would like to avail the exemption from VAT in accordance with the import liberalization program under Central Bank Circular No. 1127 and 1128 and pursuant to Section 109(c) of the Tax Code of 1997. In reply, please be informed that such importation is exempt from VAT pursuant to Section 109(c) of the Tax Code of 1997 which states, viz: "SEC. 109. Exempt Transactions . The following shall be exempt from the value-added tax: "(a) . . . "xxx xxx xxx "(c) Sale or importation of agricultural and marine food products in their original state livestock and poultry of a kind generally used as, or yielding, or producing foods for human consumption; . . . "Products classified under this paragraph . . . shall be considered in their original state even if they have undergone the simple processes of preparation or preservation for the market, such as freezing, drying salting, broiling, roasting, smoking or stripping. . . ." (VAT Ruling Nos. 116-88 dated April 30, 1988 and 393-88 dated August 25, 1988) This ruling is issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different from that as represented, then this ruling shall be considered null and void. Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal & Enforcement Group)