10% VAT Imposed on Corn Germ

June 29, 1988 BIR RULING NO. 291-88 100 181-88 291-88 S i r : This refers to your letter dated February 4, 1988 requesting a ruling as to whether or not corn germ is subject to the value-added tax (VAT). It is represented that corn germ is separated from the corn grits, corn grain and other corn parts during the contraptions and screens of different gauges. It is sold to oil mills for extraction of oil or as an ingredient in the manufacture of all types and animal feeds, including aqua-culture feeds. In reply, you are informed that although corn germ is a by-product in the process of milling corn, it is not one of those considered in their original state for purpose of Section 103(b) of the Tax Code, as amended by Executive Order No. 273. It is noted in said provision that only corn grits, another by-product is considered in their original state. Such being the case, corn germ which is a manufactured product and no longer in its original state is subject to 10% value-added tax imposed by Section 100 of the Tax Code as amended by Executive Order No. 273. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner