10% VAT on Raw Material/feed Ingredients Used in the Manufacture of Animal and Poultry Feeds
BIR Ruling No. 193-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 5, 1988
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May 5, 1988 BIR RULING NO. 193-88 101 (a) 113-88 193-88 Gentlemen : This refers to your letter dated February 19, 1988 requesting certification to the effect that the following raw material/feed ingredients to be used in the manufacture of animal and poultry feeds are exempt from the value-added tax, viz: cdtech 1. Skimmed Milk Powder 16. Choline Chloride 2. Vital Wheat Gluten 17. DL-Methionine 3. Meat and Bone Meal 18. Erythromycin Thiocyanate 4. Lactose Powder 19. BHT Feed Grade 5. Shrimp Shell Meal 20. Biotin 6. Squid Powder 21. Potassium Iodide 7. Shrimp Feed 22. Zinc Oxide 8. Vitamins A, B, C, D, E & K3 23. Furazolidone 9. Calcium D-Pantothenate 24. Clopidol 10. Folic Acid 25. Copper Sulfate 11. Niacin Feed Grade 26. L-Lysine 12. Pyrimethamine 27. Manganese Sulfate 13. Ascorbic Acid 28. Zinc Bacitracin 14. Pyridoxine Hydrochloride 29. Ferrous Sulfate 15. Carophyl Red/Yellow 30. Fish Oil In reply, please be informed that the foregoing raw materials to be used in the manufacture of animal and poultry feeds are subject to the value-added tax of 10% imposed under Section 101(a) of the Tax Code as amended by Executive Order No. 273, This is so because under Section 103(c) of the same Code, the exemption covers only the manufactured fish, animal and poultry feeds and not the raw materials used in the manufacture of said feeds as in the instant case . cd Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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