Exemption of the Sales of Non-Food Agricultural Products in Their Original State from VAT
BIR Ruling No. 127-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 7, 1988
Full text
April 7, 1988 BIR RULING NO. 127-88 103 (a) 000-00 127-88 Gentlemen : This refers to your letter dated March 24, 1988 requesting a ruling on whether you are exempt from the value-added tax on your planting, producing and marketing of your owned produced cotton products. In reply, please be informed that the sales of non-food agricultural products in their original state by the primary producer or owners of the land where the same are produced are exempt from the value-added tax under Section 103(a) of the Tax Code, as amended by Executive Order No. 273. Accordingly, your owned produced cotton being a non-food agricultural product, the sales thereof is exempt from the value-added tax. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner
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