Exemption of Roasted and Ground Coffee from VAT

March 24, 1988 BIR RULING NO. 117-88 103 (b) 019-88 117-88 Gentlemen : This refers to your letter dated February 24, 1988 in effect requesting a ruling as to whether roasted and ground coffee are subject to the 10% value-added tax (VAT). In reply, please be informed that roasted and ground coffee are not considered manufactured products. (BIR Ruling Nos. 035-86 and 079-86) Such being the case, your sales thereof are exempt from the value-added tax in all stages of distribution pursuant to Section 103(b) of the Tax Code, as amended by E.O. No. 273 and as implemented by Section 9(2) of Revenue Regulations No. 5-87.However, if the ground coffee is packed or placed in bottles or cans and sold, the same is already a manufactured product (BIR Ruling No. 315-87); hence, subject to the value-added tax if your sales exceed P200,000.00 during the 12-month period. (BIR Ruling No. 019-88 dated February 2, 1988.) Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner