Importation of Mineral Water is Subject to 10% Advance Sales Tax and Annual Fixed Tax of P1,000
BIR Ruling No. 226-87 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Aug 3, 1987
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August 3, 1987 BIR RULING NO. 226-87 162 (c) 163 (2) (e) 000-00 226-87 Gentlemen : This refers to your letter dated April 27, 1987 requesting confirmation of your opinion that your imported Perrier (Sample submitted) is a beverage subject to 10% advance sales tax. It is represented that Perrier is naturally sparkling mineral water, bottled directly at the spring without any additives or alterations. In reply, please be informed that your opinion is confirmed. "Beverage" in its common meaning signifies a liquid designed for drinking by human beings. (Words and Phrases) On the basis of your representation, Perrier falls within the purview of the term "beverage" intended for consumption as a drink; hence its importation is subject to 10% advance sales tax pursuant to Section 162 (c) in relation to Section 163 (2)(e) of the Tax Code as amended. cdta Moreover, as importer of Perrier , a mineral water, you are subject to the annual fixed tax of P1,000.00 [Sec. 161 (3) w, Tax Code] Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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