Santeh Feeds Corporation

August 22, 2022 BIR RULING NO. VAT-371-2022 Sec. 109 (1) (B) of the NIRC of 1997; BIR Ruling No. 816-2018 Santeh Feeds Corporation 701 The Richwell Center, #102 Timog Avenue Sacred Heart, Quezon City 1103 Attention: AAA _______________ Gentlemen : This refers to your request on behalf of SANTEH FEEDS CORPORATION for certificate of exemption from value-added tax (VAT) in the manufacture and sale of fish meals, pursuant to Section 109 (1) (B) of the National Internal Revenue Code (Tax Code) of 1997, as amended. Documents submitted show that SANTEH FEEDS CORPORATION, is a corporation organized and existing under Philippine laws; that it is duly registered with the Securities and Exchange Commission (SEC); and that as shown in its Articles of Incorporation, its primary purpose is " to engage in the business of milling, manufacturing, processing, packing and repacking, buying and selling at wholesale, exporting and importing and otherwise dealing in all kinds of feeds; primary and supplementary ingredients and/or other cereals, agricultural products, implements and machineries, particularly but not limited to feeds and agricultural chemicals ." SANTEH FEEDS CORPORATION was issued by the Bureau of Animal Industry (BAI) with the following Certificate of Registration, to wit: Feed Establishment Registration Certificate BAI Reg. No. M-346 Commercial Mixed Feed Manufacturer Feed Establishment Registration Certificate BAI Reg. No. IM-362 Feed Importer Feed Establishment Registration Certificate BAI Reg. No. EX-006 Feed Exporter Feed Establishment Registration Certificate BAI Reg. No. CFT-19-088 Commercial Feed Trader with License to Operate, to wit: BAI LTO No. VDAPDI-0161 Veterinary Drug and Product Distributor/Importer Valid from July 15, 2020 to July 24, 2022 Records also show that SANTEH FEEDS CORPORATION is engaged in the sale of the following feed products: NAME OF PRODUCT CLASSIFICATION BAI FEED PRODUCT REGISTRATION NO. VALID UNTIL 1 TATEH MILKFISH BREEDER PELLET Aqua Feed AFL-18-1292 12/31/2021 2 TATEH CRAB GROWER POWDER Aqua Feed ACL-19-1416 12/31/2021 3 TATEH CRAB STARTER POWDER Aqua Feed ACL-19-1415 12/31/2021 4 TATEH MILKFISH PRE-STARTER 2 SURFER PELLET Aqua Feed AFL-19-1417 12/31/2021 5 TATEH RABBITFISH FEED No. 2 PRE-STARTER PELLET Aqua Feed AFL-19-1418 12/31/2021 6 TATEH EEL FINISHER PELLET Aqua Feed AFL-19-1414 12/31/2021 7 TATEH EEL GROWER PELLET Aqua Feed AFL-19-1413 12/31/2021 8 TATEH EEL PRE-STARTER 2 PELLET Aqua Feed AFL-19-1411 12/31/2021 9 TATEH EEL STARTER PELLET Aqua Feed AFL-19-1412 12/31/2021 10 TATEH CRAB PRE-STARTER MASH Aqua Feed ACL-1035 12/31/2021 11 TATEH CATFISH FINISHER SURFER PELLET Aqua Feed AFL-284 12/31/2021 12 TATEH CATFISH GROWER SURFER PELLET Aqua Feed AFL-283 12/31/2021 13 TATEH CATFISH STARTER PREMIUM CRUMBLE Aqua Feed AFL-281 12/31/2021 14 TATEH CATFISH STARTER PREMIUM FRY MASH Aqua Feed AFL-280 12/31/2021 15 TATEH CATFISH STARTER SURFER PELLET Aqua Feed AFL-282 12/31/2021 16 TATEH MILKFISH FINISHER ECS PELLET Aqua Feed AFL-313 12/31/2021 17 TATEH MILKFISH FINISHER PREMIUM EXTRUSINK PELLET Aqua Feed AFL-20-1428 12/31/2021 18 TATEH MILKFISH FINISHER SURFER PELLET Aqua Feed AFL-309 12/31/2021 19 TATEH MILKFISH GROWER PREMIUM EXTRUSINK PELLET Aqua Feed AFL-20-1429 12/31/2021 20 TATEH MILKFISH GROWER ECS PELLET Aqua Feed AFL-312 12/31/2021 21 TATEH MILKFISH GROWER SURFER PELLET Aqua Feed AFL-308 12/31/2021 22 TATEH MILKFISH PRE-STARTER SURFER PELLET Aqua Feed AFL-357 12/31/2021 23 TATEH MILKFISH STARTER PREMIUM EXTRUSINK PELLET Aqua Feed AFL-20-1427 12/31/2021 24 TATEH MILKFISH STARTER PREMIUM EXTRUSINK CRUMBLE Aqua Feed AFL-317 12/31/2021 25 TATEH MILKFISH STARTER PREMIUM EXTRUSINK FRY MASH Aqua Feed AFL-316 12/31/2021 26 TATEH MILKFISH STARTER SURFER PELLET Aqua Feed AFL-307 12/31/2021 27 TATEH PANGASIUS FEED NO. 6 FINISHER 1 PELLET Aqua Feed AFL-045 12/31/2021 28 TATEH PANGASIUS FEED NO. 7 FINISHER 2 PELLET Aqua Feed AFL-046 12/31/2021 29 TATEH POMPANO NO. 1 MASH Aqua Feed AFL-331 12/31/2021 30 TATEH POMPANO NO. 2 CRUMBLE Aqua Feed AFL-332 12/31/2021 31 TATEH POMPANO NO. 3 STARTER PELLET Aqua Feed AFL-333 12/31/2021 32 TATEH POMPANO NO. 4 GROWER PELLET Aqua Feed AFL-067 12/31/2021 33 TATEH POMPANO NO. 5 FINISHER PELLET Aqua Feed AFL-068 12/31/2021 34 TATEH SEABASS FEED NO. 1 MASH Aqua Feed AFL-337 12/31/2021 35 TATEH SEABASS FEED NO. 2 CRUMBLE Aqua Feed AFL-338 12/31/2021 36 TATEH SEABASS FEED NO. 3 STARTER PELLET Aqua Feed AFL-339 12/31/2021 37 TATEH SEABASS FEED NO. 4 GROWER 1 PELLET Aqua Feed AFL-069 12/31/2021 38 TATEH SEABASS FEED NO. 5 GROWER 2 PELLET Aqua Feed AFL-340 12/31/2021 39 TATEH SEABASS FEED NO. 6 FINISHER 1 PELLET Aqua Feed AFL-341 12/31/2021 40 TATEH SEABASS FEED NO. 7 FINISHER PELLET Aqua Feed AFL-070 12/31/2021 41 TATEH SNAPPER FEED NO. 4 GROWER 1 PELLET Aqua Feed AFL-010 12/31/2021 42 TATEH SNAPPER FEED NO. 5 GROWER 2 PELLET Aqua Feed AFL-011 12/31/2021 43 TATEH SNAPPER FEED NO. 7 FINISHER 2 PELLET Aqua Feed AFL-012 12/31/2021 44 TATEH SNAPPER FEED NO. 1 PRE STARTER 1 MASH Aqua Feed AFL-008 12/31/2021 45 TATEH SNAPPER FEED NO. 2 PRE-STARTER 2 CRUMBLE Aqua Feed AFL-007 12/31/2021 46 TATEH SNAPPER FEED NO. 3 STARTER PELLET Aqua Feed AFL-009 12/31/2021 47 TATEH SNAPPER FEED NO. 6 FINISHER 1 PELLET Aqua Feed AFL-336 12/31/2021 48 TATEH TILAPIA FINISHER CL15 PELLET Aqua Feed AFL-19-1346 12/31/2021 49 TATEH TILAPIA FINISHER PREMIUM EXTRUSINK PELLET Aqua Feed AFL-19-1345 12/31/2021 50 TATEH TILAPIA PRE-STARTER ZERO SURFER PELLET Aqua Feed AFL-932 12/31/2021 51 TATEH TILAPIA STARTER CRUMBLE CAGE X CRUMBLE Aqua Feed AFL-001 12/31/2021 52 TATEH TILAPIA STARTER PREMIUM EXTRUSINK PELLET Aqua Feed AFL-19-1344 12/31/2021 53 TATEH VANNAMEI STARTER PELLET Aqua Feed AFL-323 12/31/2021 54 TATEH TILAPIA BREEDER PELLET Aqua Feed AFL-18-1298 12/31/2021 55 TATEH FEEDS MILKFISH PRE-STARTER EXTRUSINK PELLET Aqua Feed AFL-740 12/31/2021 56 TATEH FEEDS TILAPIA GROWER AMINO PLUS 40 PELLET Aqua Feed AFL-692 12/31/2021 57 TATEH FEEDS TILAPIA PRE-STARTER EXTRUSINK PELLET Aqua Feed AFL-741 12/31/2021 58 TATEH MILKFISH FINISHER PREMIUM EXTRUFLOAT PELLET Aqua Feed AFL-21-1526 12/31/2021 59 TATEH MILKFISH STARTER PREMIUM EXTRUFLOAT PELLET Aqua Feed AFL-21-1525 12/31/2021 60 TATEH FEEDS RABBITFISH FINISHER PELLET Aqua Feed AFL-017 12/31/2021 61 TATEH FEEDS RABBITFISH GROWER PELLET Aqua Feed AFL-016 12/31/2021 62 TATEH FEEDS RABBITFISH STARTER PELLET Aqua Feed AFL-015 12/31/2021 63 TATEH TILAPIA FINISHER PREMIUM EXTRUFLOAT PELLET Aqua Feed AFL-21-1524 12/31/2021 64 TATEH TILAPIA GROWER PREMIUM EXTRUFLOAT PELLET Aqua Feed AFL-21-1523 12/31/2021 65 TATEH TILAPIA STARTER PREMIUM EXTRUFLOAT PELLET Aqua Feed AFL-21-1522 12/31/2021 66 MILKFISH FINISHER CL 15 PELLET Aqua Feed AFL-18-1297 12/31/2021 67 MILKFISH GROWER CL 15 PELLET Aqua Feed AFL-18-1296 12/31/2021 68 TATEH FRY BOOSTER 2 Aqua Feed AFL-269 12/31/2021 69 TATEH FRY BOOSTER 3 Aqua Feed AFL-270 12/31/2021 70 TATEH TILAPIA STARTER SURFER PELLET Aqua Feed AFL-304 12/31/2021 71 TATEH TILAPIA FINISHER SURFER PELLET Aqua Feed AFL-306 12/31/2021 72 TATEH TILAPIA GROWER PREMIUM EXTRUSINK PELLET Aqua Feed AFL-18-1294 12/31/2021 73 TATEH TILAPIA GROWER SURFER PELLET Aqua Feed AFL-305 12/31/2021 74 TATEH TILAPIA PRE-STARTER SURFER PELLET Aqua Feed AFL-356 12/31/2021 75 TATEH TILAPIA STARTER AMINO PLUS 40 PELLET Aqua Feed AFL-18-1291 12/31/2021 76 TATEH TILAPIA STARTER PREMIUM EXTRUSINK CRUMBLE Aqua Feed AFL-18-1293 12/31/2021 77 TATEH TILAPIA STARTER PREMIUM EXTRUSINK FRY MASH Aqua Feed AFL-18-1299 12/31/2021 78 TATEH VANNAMEI FINISHER PELLET Aqua Feed AFL-325 12/31/2021 79 TATEH VANNAMEI GROWER PELLET Aqua Feed AFL-324 12/31/2021 80 TATEH VANNAMEI PRE-STARTER 1 FRY MASH Aqua Feed APL-18-1300 12/31/2021 81 TATEH VANNAMEI PRE-STARTER 2 PELLET Aqua Feed APL-18-1301 12/31/2021 82 TILAPIA GROWER CL 15 PELLET Aqua Feed AFL-8-1295 12/31/2021 83 TATEH CATFISH PRE-STARTER SURFER PELLET Aqua Feed AFL-934 12/31/2021 84 TATEH CATFISH PRE-STARTER ZERO SURFER PELLET Aqua Feed AFL-933 12/31/2021 85 TATEH CRAB FATTENER POWDER Aqua Feed ACL-19-1349 12/31/2021 86 TATEH EEL FRY POWDER Aqua Feed AFL-19-1347 12/31/2021 87 TATEH EEL PRE-STARTER 1 PELLET Aqua Feed AFL-19-1348 12/31/2021 88 TATEH FRY SUPPLEMENT Aqua Feed AFL-272 12/31/2021 89 TATEH FRY BOOSTER 1 Aqua Feed AFL-268 12/31/2021 90 TATEH GROUPER FEED NO. 2 CRUMBLE Aqua Feed AFL-19-1359 12/31/2021 91 TATEH GROUPER FEED NO. 3 STARTER 1 PELLET Aqua Feed AFL-19-1360 12/31/2021 92 TATEH GROUPER FEED NO. 4 STARTER 2 PELLET Aqua Feed AFL-19-1361 12/31/2021 93 TATEH GROUPER FEED NO. 5 GROWER 1 PELLET Aqua Feed AFL-19-1362 12/31/2021 94 TATEH GROUPER FEED NO. 6 GROWER 2 PELLET Aqua Feed AFL-19-1363 12/31/2021 95 TATEH GROUPER FEED NO. 7 FINISHER 1 PELLET Aqua Feed AFL-9-1364 12/31/2021 96 TATEH GROUPER FEED NO. 8 FINISHER 2 PELLET Aqua Feed AFL-19-1365 12/31/2021 97 TATEH GROUPER NO. 1 FRY MASH Aqua Feed AFL-274 12/31/2021 98 TATEH MILKFISH PRE-STARTER ZERO SURFER PELLET Aqua Feed AFL-931 12/31/2021 99 TATEH MONODON FINISHER PELLET Aqua Feed APL-19-1342 12/31/2021 100 TATEH MONODON GROWER PELLET Aqua Feed APL-19-1341 12/31/2021 101 TATEH MONODON PRE-STARTER 1 FRYMASH Aqua Feed APL-19-1338 12/31/2021 102 TATEH MONODON PRE-STARTER 2 CRUMBLE Aqua Feed APL-19-1339 12/31/2021 103 TATEH MONODON STARTER PELLET Aqua Feed APL-19-1340 12/31/2021 104 TATEH PANGASIUS BROODSTOCK PELLET Aqua Feed AFL-047 12/31/2021 105 TATEH PANGASIUS FEED NO. 1 PRE-STARTER 1 MASH Aqua Feed AFL-040 12/31/2021 106 TATEH PANGASIUS FEED NO. 2 PRE-STARTER 2 CRUMBLE Aqua Feed AFL-041 12/31/2021 107 TATEH PANGASIUS FEED NO. 3 PRE-STARTER PELLET Aqua Feed AFL-042 12/31/2021 108 TATEH PANGASIUS FEED NO. 4 GROWER 1 PELLET Aqua Feed AFL-043 12/31/2021 109 TATEH PANGASIUS FEED NO. 5 GROWER 2 PELLET Aqua Feed AFL-044 12/31/2021 In reply, please be informed that Section 109 (1) (B) of the Tax Code of 1997, as amended by Republic Act No. 10963, provides for the exemption from VAT on the sale or importation of feeds. The aforesaid provision reads, viz. : "SEC. 109. Exempt Transactions. (1) Subject to the provisions of subsection (2) hereof, the following transactions shall be exempt from the value-added tax: (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); xxx xxx xxx" The words "ingredients" and "feeds" are defined in Section 3 of Republic Act (RA) No. 1556 (An Act to Regulate and Control the Manufacture, Importation, Labelling, Advertising, and Sale of Livestock and Poultry Feeds), otherwise known as the "Livestock and Poultry Feeds Act," as amended by Presidential Decree (PD) No. 7, as follows: "Section 3. Definitions. For the purpose of this Act, the following terms shall mean: xxx xxx xxx (d) "Feeds" or "Feeding Stuff" shall include all such articles to be used as feeds for the purpose of feeding purporting to supply proteins, carbohydrates, fats, minerals, vitamins, antibiotics and/or correcting nutritional disorders. Such articles may be locally produced or imported, mixed or in the form of simple ingredients. xxx xxx xxx (l) "Ingredients" means any single article of feed or feeding stuff which enters into the composition of a ration, concentrate, or supplement." xxx xxx xxx Based on the above-cited provision, the distribution/sale of feeds by SANTEH FEEDS CORPORATION is considered exempt from VAT pursuant to Section 109 (1) (B) of the Tax Code of 1997, as amended, provided that the feeds enumerated above are used exclusively for the production of livestock and poultry feeds, and not for specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets. 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.) LILIA CATRIS GUILLERMO Commissioner of Internal Revenue