Sale of "Alamang" is Exempt from the 10% Value-Added Tax
BIR Ruling No. 119-89 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 7, 1989
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June 7, 1989 BIR RULING NO. 119-89 103 (b) 000-00 119-89 M a d a m : This refers to your letter dated February 23, 1989, stating that you are engaged in buying fresh "alamang"; that in order to preserve its freshness, you apply little salt to it; and that thereafter you sell the same to processors of "bagoong". You stated further that your sales do not exceed P200,000.00 per annum . cdtech You now request a ruling as to whether your sales are subject to the 10% value-added tax (VAT). In reply, please be informed that pursuant to Section 103(b) of the Tax Code as amended by E.O. No. 273, the sale and importation in their original state of agricultural and marine food products are exempt from the value-added tax. Accordingly, your aforesaid sale is exempt from the 10% value-added tax. However, your sales are subject to VAT if you are VAT-registered, pursuant to Section 107(d) of the same Code, as amplified by Section 18(c) of Revenue Regulations No. 5-87. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner
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