BIR Ruling No. 078-65

July 7, 1965 BIR RULING NO. 078-65 Mercator Finance Corporation P. O. Box 604, Manila Attention : Mr . Herminio T . Disini Asst . Vice President Gentlemen : This refers to your letter dated June 10, 1965 requesting a ruling on the rate of tax on your proposed importation of vending machines. You stated that a vending machine is primarily used to vend or sell merchandise such as soft drinks, coffee, ice cream, ice cubes, etc; that its main and principal parts constitute of devices designed to effect the automatic release of the merchandise placed therein for sale; that the cooling apparatus attached thereto is merely secondary thereto or an accessory thereof; and that said vending machines are imported not for sale to the public as household appliances but for lease only to stores and restaurants. In answer thereto, I have the honor to inform you that the said vending machines do not come within the purview of the term "beverage cooler" as used in section 185-A(b) of the Tax Code. Accordingly, the same are subject only to 7% compensating tax pursuant to section 190, in relation to section 186, both of the Tax Code. Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue