VAT Exemption on the Importation and Sales of Potassium Nitrate
BIR Ruling No. 414-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Aug 25, 1988
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August 25, 1988 BIR RULING NO. 414-88 103 (c) 050-88 414-88 Gentlemen : This refers to your letter dated August 9, 1988 requesting a ruling that your importation and sales of potassium nitrate is exempt from value-added tax. In reply, please be informed that under BIR Ruling No. 163(2)-000-00-050-87 reading: "It is represented (brochures submitted) that potassium nitrate primarily used in agriculture, is a pure binary fertilizer consisting entirely of nutrient elements, namely 38% potassium and 62% nitrate; that it is a particularly suitable potassic fertilizer for citrus and other fruit-bearing trees and also applicable in the production of potatoes and vegetables; and that it is a non-traditional fertilizer which is used by mango growers as flower inducer and at the same time as foliar fertilizer". potassium nitrate has been classified as a non-traditional foliar fertilizer. Such being the case, it is exempt from VAT pursuant to Section 103(c) of the Tax Code, as amended by Executive Order No. 273. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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