Manufacturer-Exporter of Handicraft/Shellcraft Products Is Not Subject to Sales Tax
BIR Ruling No. 034-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 4, 1986
Full text
April 4, 1986 BIR RULING NO. 034-86 167-e 000-000 34-86 Gentlemen : This refers to your letter dated January 9, 1986 stating that you are an export oriented corporation manufacturing for export, handicraft/shellcraft products like capiz shell lampshade and the like; and that as direct exporter of said products you had been exempted from the payment of sales tax. Based on the foregoing representation, you request information as to whether you are now subject to the sales tax pursuant to Section 202(d) [now Section 167 (e)] of the Tax Code, upon its amendment by P.D. No. 1991 effective January 1, 1986. In reply, please be informed that your query is answered in the negative. Under said Section 167(e) as amended, articles shipped or exported by the manufacturer are exempt from the sales tax. Even prior to the said amendment a manufacturer-exporter was not subject to the sales tax, in accordance with Section 202(d) of the Tax Code. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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