Packaging Materials for Beverage is Subject to 10% Sales Tax

June 29, 1987 BIR RULING NO. 181-87 162-2 000-00 181-87 Gentlemen : This refers to the letter dated November 22, 1986 of General Offset Press, Inc., requesting in your behalf a certification to the effect that you are entitled to claim a tax credit on the excess sales tax paid by you on your purchase of packaging materials during the months of June and July, 1986. It appears that during the said months, you purchased from General Offset Press, Inc., packaging materials for your finished product beverage; and that you were billed by the latter sales tax at the rate of 20% for such packaging materials. iatdc In connection therewith, please be informed that since your finished product, beverage, is classified as essential article subject to 10% sales tax, the packaging materials shall be subject to the same rate of tax as the finished article. (Section 6, Rev. Regs. No. 5-86 which became effective on January 1, 1986). Accordingly, since you were billed by General Offset Press, Inc. sales tax at the rate of 20% on your purchase of packaging materials from the former, you have made an overpayment which may be applied against your other internal revenue tax liabilities. For this purpose, you should file an application for the issuance of a tax credit certificate with the Appellate Division, this Bureau, within two years from date of overpayment. (Section 7, Rev. Regs. No. 5-86). Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner