BIR Ruling [DA-668-99]

December 6, 1999 BIR RULING [DA-668-99] Central Azucarera Don Pedro 6/F Cacho-Gonzales Building 101 Aguirre St., Legaspi Village Makati City Gentlemen : This refers to the letter of Mr. Vicente M. Lovina, Chairman of the Negros Consolidated Farmers Multi-Purpose Cooperative , regarding the exemption of the said cooperative from the payment of advanced VAT on the withdrawal of its refined sugar from your sugar refinery. It is represented by Mr. Lovina that their cooperative is a primary agricultural cooperative duly registered with the CDA under the Certificate of Registration No. ILO-1426 dated February 4, 1993 and that the said cooperative was granted a Tax Exemption Certificate dated May 24, 1999 by the Deputy Commissioner, Legal and Enforcement Group, this Bureau. On the basis of the foregoing facts and pursuant to Arts. 61 and 62 of Cooperative Code in relation to Section 109 (r) of the Tax Code of 1997, the Negros Consolidated Farmers Multi-Purpose Cooperative , being a primary agricultural cooperative duly registered with the CDA, is exempt from all taxes and fees imposed under internal revenue laws including the Value Added Tax (VAT). In view of the foregoing, this office hereby grants the request for clearance to withdraw for sale the refined sugar owned by the said cooperative from your sugar mill without prepayment of VAT pursuant to its Tax Exemption Certificate previously issued by this Office. cdll Very truly yours, (SGD.) BEETHOVEN L. RUALO Commissioner of Internal Revenue