Importation of Canadian Whole Green Peas (Feed Grade) Not Exempt from Value Added Tax

July 30, 1996 BIR RULING NO. 083-96 103 (d) 000-00 083-96 Royal Feeds & Mercantile Corporation 436 Clavel Street, Binondo Manila Attention: Mr . Quirino Alberto, Jr . General Manager Gentlemen : This refers to your letter dated September 29, 1995, in effect, requesting for exemption from the value added tax your importation of Canadian Whole Green Peas (Feed Grade) which arrived in Manila on September 28, 1995. In reply, please be informed that prior to the implementation of the Expanded VAT Law (RA 7716) the only animal feed ingredients granted VAT exemption are soya beans and fish meal. All other feed ingredients i.e., vitamins, added to the animal feeds are taxable. However, under Section 103(d) of the Tax Code, as amended by the Expanded Vat Law, effective January 1, 1996, all ingredients of animal feeds (other than specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals considered as pets) are now exempt from VAT. Accordingly, if imported Canadian whole green peas (feed grade) are certified by the Bureau of Animal Industry as ingredients of regular animal feeds, your opinion that said ingredients are exempt from VAT effective January 1, 1996 is correct. Otherwise, without a written certification by said government Office, your request for VAT exemption has to be as it is hereby denied for lack of basis. However, importation of said feed grade Whole Green Peas prior to the implementation of the EVAT on January 1, 1996 are subject to VAT because they are neither finished animal fees, nor soya beans and fish meal. casia Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue