VAT Exemption Privilege Granted to the Importation/Sale of Ingredients for Livestock and Poultry Feeds

April 19, 1988 BIR RULING NO. 151-88 102 (a) (2) 103 (c) 000-00 151-88 Gentlemen : In reply to your letters dated February 8, 12 and 13, 1988, please be informed as follows: 1. Banana meal as a raw material in the production of animal and poultry feeds is subject to VAT since the exemption under Section 103(c) of the Tax Code as amended by E.O. 273 is limited only to soya bean and fish meal. As an agricultural food product, it is not considered in its original state since it has already undergone the process of milling. 2. Pursuant to Section 103(c) of the Tax Code as amended by E.O. No. 273, the VAT exemption privilege granted to the importation/sale of ingredients for livestock and poultry feeds is limited only to soya bean and fish meal. In this connection, the following essential raw materials in the production of livestock and poultry feeds are subject to VAT. DL Methionine 99% L-Lysine HCL 98% FG Choline Chloride 75% Solution Choline Chloride 50% Corn Cob Sumilizer BHT-98% Bitoin F-2 Potassium Iodide USP Ferrous Sulfate 31% Manganese Sulfate FG 3. The service fees/commissions received from your clients and principals abroad for research and sales promotion services are zero rated since the proceeds are paid in acceptable foreign currency inwardly remitted and duly accounted for in accordance with Central Bank regulations. This is in pursuance to Section 102 (a)(2) of the Tax Code as amended by E.O. No. 273. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner