10% Sales Tax on Pipes and Fittings, Roofing Materials

February 5, 1987 BIR RULING NO. 029-87 163 (2) (k) 029-87 Gentlemen : This refers to your letter dated January 21, 1987 stating that your company manufactures Polyvinyl Chloride resins (PVC) for use in the manufacture of pipes and fittings and corrugated sheets; and that you want to know the rate of sales tax payable by you on your sale of said Polyvinyl Chloride resins to various customers-manufacturers of said products. In reply, please be informed that among the essential articles subject to 10% sales tax are pipes and fittings, roofing materials such as plain and corrugated G.I. sheets of gauge 24 or over. (Section 163(2)(k), Tax Code as amended by Executive Order No. 36). Accordingly, your manufactured Polyvinyl Chloride resins (PVC) which are used as raw materials in the production or manufacture of essential articles, e.g., PVC pipes and fittings, corrugated sheets, shall be taxed at the same rate of 10%. In such case, the purchasers shall certify to you that the articles shall be used exclusively in the manufacture or preparation of essential articles. If the purchasers fail to issue the certification, the raw materials considered as non-essential and ordinary articles shall be taxed at the rate of 30% and 20%, respectively. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner