BIR Ruling No. 367-12

May 31, 2012 BIR RULING NO. 367-12 Sec. 109 (B) of the Tax Code, as amended; 000-00 Agspec Philippines Corporation Rm. 105, 6708 Country Inn, Bangkal St. Brgy. San Antonio, Los Baos, Laguna Attention: Felicitos V. Palis Chief Operating Officer Gentlemen : This refers to your letter dated March 21, 2012 requesting VAT exemption on the importation of Trafos K Liquid Foliar Fertilizer. It is represented that Agspec Philippines Corporation with Tax Identification Number 244-661-090-000, is a domestic company engaged in trading of goods such as pesticides, fertilizers and allied products on wholesale basis and import/export of pesticides, fertilizers and allied products; that it is importing Trafos K Liquid Foliar Fertilizer, a kind of fertilizer certified by Fertilizer and Pesticide Authority as exempt from VAT as per Executive Order No. 273 as amended by RA 7716; and that Trafos K (P2O5 = 30%, K 2 O = 20%) is registered with the Fertilizer and Pesticide Authority per Certificate of Product Registration No. 1-1IF-2793 dated February 2, 2010. In reply, please be informed that Section 109 (B) of the Tax Code of 1997, as amended, provides: AETcSa "SEC. 109. Exempt Transactions . (1) Subject to the provisions of Subsection (2) hereof, the following transactions shall be exempt from the value-added tax: xxx xxx xxx (B) Sale or importation of fertilizers ;seeds, seedlings and fingerlings; fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds (except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets);" (emphasis ours) xxx xxx xxx In view of the foregoing and considering that Trafos K Liquid Foliar Fertilizer had been issued a Certificate of Product Registration by the Fertilizer and Pesticide Authority, Agspec Philippines Corporation's importation of such fertilizer shall be exempt from VAT pursuant to the above-cited provision of the Tax Code of 1997, as amended. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue