VAT Imposed on Fried Green Peas, Peanuts and "Patani" Beans, Packed in Plastic
BIR Ruling No. 092-89 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 2, 1989
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May 2, 1989 BIR RULING NO. 092-89 112 315-87 092-89 M a d a m : This refers to your letter dated February 22, 1989 stating that you buy green peas, peanuts and "patani" beans; that you clean and fry said products separately; that after frying, you mix with it little amount of salt and vetsin; and that you then pack the same in plastics to make them ready for sale as fried green peas, fried peanuts and fried "patani" beans. You now request a ruling as to whether you are subject to value-added tax. aisadc In reply, please be informed that fried green peas, peanuts and "patani" beans, packed in plastic are considered as manufactured products (BIR Ruling Nos. 315-87 and 019-88); hence, subject to the value-added tax if your sales exceed P200,000.00 during the 12-month period. But if your sales derived from all lines of business do not exceed P200,000.00 during any 12-month period, you are exempt from VAT but subject to a tax equivalent to 2% of your gross quarterly sales pursuant to Section 103(w) in relation to Section 112, both of the Tax Code as amended. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner
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