Imported Oleum and Aluminum Sulphate to be Used as Raw Materials in the Manufacture of Soaps and Detergents are Subject to 10% Sales Tax

July 16, 1987 BIR RULING NO. 209-87 163 (2) (i) 285-86 209-87 Gentlemen : This refers to your letter dated June 13, 1987 requesting a ruling as to the correct rate of tax due on your importation of Sulphur and Aluminum Hydroxide which you use in the manufacture of Oleum and Aluminum Sulphate respectively, which are in turn used as raw materials in the manufacture of soaps and detergents. In reply, please be informed that soaps and detergents are subject to the 10% sales tax, in accordance with Section 163 (2)(i) of the Tax Code. Accordingly, Oleum and Aluminum Sulphate which are used as raw materials in the manufacture or preparation of soaps and detergents are subject to sales tax at the same rate of 10% provided that the purchasers thereof shall certify to you that the said raw materials shall be used exclusively in the manufacture of soaps and detergents. [Section 163(2), Tax Code, as amended by Executive Order No. 36]. If the purchasers fail to issue the certification, the above materials will be subject to the 20% sales tax. cdtech On the other hand, you, as importer shall certify to this Bureau that your importation of Sulphur and Aluminum Hydroxide shall be used exclusively as raw materials in the manufacture of Oleum and Aluminum Sulphate. If you fail to issue the certification, your aforesaid importation will be subject to 20% advance sales tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner