100% Frozen Ground Beef Patties Considered as Agricultural Products in their Original State and Hence Exempt from VAT

August 26, 1997 BIR RULING NO. 094-97 103 (c) 000-00 094-97 General Milling Corporation 6th Floor, Corinthian Plaza 121 Paseo de Roxas, Makati City Attention: Mr . Segundo B . Zosa III Import Manager Gentlemen : This refers to your letter dated March 5, 1997 requesting clarification as to whether the 100% frozen ground beef patties which you intend to import can be considered as agricultural products in their original state and hence exempt from VAT. In reply, please be informed that Section 103(3) of the Tax Code, as amended by RA 7716 as further amended by RA 8241, provides that the sale or importation of agricultural and marine food products in their original state . . . shall be exempt from the value-added tax. Section 4.103-1(E) of Revenue Regulations No. 7-95 as amended by Revenue Regulations No. 6-97 provides that meat, fruit, fish, vegetables and other agricultural and marine products shall be considered in their original state even if they have undergone the simple processes of preparation or preservation for the market such as freezing, drying, salting, broiling, roasting, smoking or stripping, including those using advanced technological means of packaging, such as shrink wrapping in plastics, vacuum packing, tetra-pak and other similar packaging methods. Considering that the 100% beef has only been grounded and formed into patties without further processing nor any preservatives added, the same remains food product in its original state; hence, the importation thereof is exempt from VAT pursuant to said Section 103(c) of the Tax Code, as amended. This ruling is issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. casia Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue