Applicability of BIR Ruling No. 103-88 to Rubber and Rubber Products
BIR Ruling No. 078-91 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 29, 1991
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April 29, 1991 BIR RULING NO. 078-91 103 (a) 587-88 078-91 S i r : This refers to BIR Ruling No. 103 (a) -133-86-532-88 dated November 9, 1988 addressed to you stating that coagulated rubber juice/sap gathered from rubber plantation is an agricultural product; that the transformation and/or processing of liquid latex (rubber juice/sap) into coagulated rubber latex is not considered manufacturing; that coagulated rubber or cuplumps produced by your client agricultural non-food products still in their original state; hence, exempt from VAT pursuant to Section 103(a) of the Tax Code, as amended by Executive Order No. 273. By way of clarification, and pursuant to Section 103(a) of the Tax Code, please be informed that the aforesaid rulings apply only to the sale of rubber in dried form, cuplumps or coagulated rubber latex by the primary producer or owner of the land where the same is produced; and not when the same are sold by the subsequent purchaser, or one who is not a primary producer. This modifies BIR Ruling No. 103 (a) -133-86-532-88. cdtech Very truly yours, (SGD.) JOSE U. ONG Commissioner
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