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Coffsoy Coffee Substitute and Cooking Chocolate Are Considered Processed Coffee and Cocoa Subject to 10% Sales Tax

BIR Ruling No. 063-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 22, 1986

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May 22, 1986 BIR RULING NO. 063-86 165-A- 3-b 000-00 063-86 Gentlemen : In reply to your letter dated January 9, 1986 which was referred to this Office by the Minister of Finance, I have the honor to inform you that beverages and concentrates thereof, whether in liquid, powder or granulated form, intended for consumption as a drink , including but not limited to processed coffee, cocoa, tea or ginger, are considered essential articles subject to 10% sales tax, pursuant to Section 165(A)(3)(b) of the Tax Code, as amended by P.D. No. 2031 which took effect on January 1, 1986. Accordingly, your manufactured coffsoy coffee substitute and cooking chocolate which are represented to have been produced from local agricultural products and intended for consumption as drinks fall within the purview of the term processed coffee and cocoa subject to 10% sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner

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