Atty. Pauline Tumonong-Nuega

April 13, 2009 BIR RULING [DA-(VAT-035) 189-09] DA (VAT-017) 071-2009 Atty. Pauline Tumonong-Nuega #10 7th Lacson Street Bacolod City Madam : This refers to your letter dated February 24, 2009, in behalf of your client, the City of Sagay, Province of Negros Occidental, requesting exemption from taxes on the importation of one (1) lot of 120-pigs per hour capacity Slaughter Line from Netherlands. It is represented that the City of Sagay, Negros Occidental is an importer of one (1) lot of 120-pigs per hour capacity Slaughter Line from Handelsonderneming John Van Der Zanden B.V., Netherlands per Sangguniang Panlungsod Resolution No. 2009-024; that said imported machineries/equipment shall be used in the City's Slaughter House to provide cost-and-time efficient as well as sanitary facilities for its meat products, as there is a no local supplier in the domestic market. In reply, please be informed that beginning March 10, 1987, the effective date of Executive Order (E.O.) No. 93, all tax and duty incentives granted to government and private entities have been withdrawn with the exception of those enumerated under Section 1 of said E.O.. Accordingly, since the City of Sagay is not among those exempted under Section 1, supra , the tax and duty incentives previously enjoyed by it has been withdrawn as of March 10, 1987. SUCH BEING THE CASE, this Office holds that the importation of one (1) Lot 120-pigs per hour capacity Slaughter Line by the City of Sagay is subject to VAT as imposed under Section 107 (A) of the Tax Code of 1997, as amended by Republic Act No. 9337, as implemented by Revenue Regulations No. 16-2005. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) GREGORIO V. CABANTAC Deputy Commissioner