BIR Ruling [UN-001-95]

January 3, 1995 BIR RULING [UN-001-95] L & S Chemical Supply, Inc. 111 Rizal Avenue, Tonsuya Malabon, Metro Manila Attention: Mr . Liberato S . De Jesus General Manager Gentlemen : This refers to your letter dated November 9, 1993 requesting for a ruling that your importation of potassium nitrate is exempt from the payment of the 10% value-added tax (VAT) pursuant to Section 103 (c) of the Tax Code, as amended. cdtech It is represented that your company is registered with the Fertilizer and Pesticide Authority under FPA License No. 030, Control No. 01-01L-93, as importer-distributor of potassium nitrate water soluble fertilizer which is a chemical and basically used as a flower inducer. In reply, please be informed that pursuant to Section 3 of Presidential Decree No. 1144, "Fertilizer includes any substance, solid or liquid or any nutrient element or elements, organic or inorganic, singly or in combination with other materials, applied directly to the soil for the purpose of promoting plant growth, increasing crop yield or improving their quality". On this basis, the chemical known as potassium nitrate being a flower inducer is a fertilizer. Accordingly, your importation of the same is exempt from VAT pursuant to Section 103(c) of the Tax Code, as amended by E.O. No. 273 and as implemented by Section 9(b) (3) of Revenue Regulations No. 5-87.(BIR Ruling No. 217-88, May 26, 1988 and VAT Ruling No. 63-90) Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)