25% Advance Sales Tax — Industrial Ventilators (Air Curtains)

February 8, 1980 BIR RULING NO. 025-80 ICOM Trade Development, Inc. P.O. Box 58 MCC Makati, Metro Manila Attention: Mr . Delfin del Mundo Managing Director Gentlemen : This refers to your letter dated October 15, 1979 requesting our opinion on whether your importation of industrial ventilators (air curtains) are subject to the 10% advance sales tax with a 25% mark-up. In reply, please be informed that, under Section 197.II of the National Internal Revenue Code, as amended, electric fans and exhaust fans [enumerated in Section 197(D)] whether for industrial use or not, if imported, are subject to a 25% sales tax. Paragraph (I) of the same section also provides, among others, that articles similar or analogous to those mentioned above, shall be subject to their respective classifications and rates. Under Department Order No. 17-78, air circulators and air purifiers are classified as articles similar or analogous to electric fans and exhaust fans. In view thereof, it is the opinion of this Office that the industrial ventilators (air curtains) imported by you are articles which are similar or analogous to electric fans and exhaust fans and, therefore, are subject to the 25% advance sales tax plus 50% mark-up, pursuant to Section 193(b) in relation to Section 197.II and (I), of the National Internal Revenue Code, as amended. Very truly yours, RUBEN B. ANCHETA Acting Commissioner