Buying and Selling Roasted Coffee Beans Not Subject to 1.5% Sales Tax but to C-13 Graduated Fixed Tax
BIR Ruling No. 201-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 30, 1986
Full text
September 30, 1986 BIR RULING NO. 201-86 161 (2) 079-86 201-86 Gentlemen : In reply to your letter dated April 16, 1986, please be informed that since coffee beans are considered agricultural products and that roasting coffee beans does not constitute manufacturing, your business of buying and selling roasted coffee beans is considered a subsequent sale of agricultural products in their original state and, therefore, not subject to the 1.5% sales tax (Section 164 Tax Code, as amended by Executive Order No. 36). However, you are subject to the C-13 graduated fixed tax imposed by Section 161(2) of the Tax Code. (Revenue Memorandum Circular No. 2-86). Very truly yours, (SGD.) ROMULO M. VILLA Acting Commissioner
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