Exemption of the Primary Producer of Non-Food Agricultural Products from VAT
BIR Ruling No. 120-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Mar 25, 1988
Full text
March 25, 1988 BIR RULING NO. 120-88 103 (a) 000-00 120-88 Gentlemen : In reply to your letter dated March 5, 1988, please be informed that being a primary producer of non-food agricultural products in their original state you are exempt from the value-added tax pursuant to Section 102(a) of the Tax Code, as amended by E.O. 273. You may, however, opt to register for VAT purposes in which case you are allowed to use as input tax credit the VAT imposed on your purchases of materials and other implements used in connection with your business. On the other hand, your resale of gardening needs like tools and flower pots are subject to the value-added tax except those that are specifically exempt under Section 103 of the Tax Code, such as fertilizers and pesticides. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner
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