BIR Ruling [UN-098-95]

March 8, 1995 BIR RULING [UN-098-95] Euro-Swiss Food, Inc. 7431 Yakal Street Makati City Gentlemen : This refers to your letter dated February 24, 1995, in effect requesting for a ruling that your importation of meat is exempt from value-added tax (VAT). It is represented that said importation consists of 9,800 kgs. Beef Briskett/Trimmings, 1,200 kgs. Frozen Mackerel and 1,000 kgs. Ox tail/tripe: that said items were cleared and released at the Bureau of Customs without prior application for Authority To Release Imported Goods (ATRIG): that you were not also aware that said items are subject to VAT: that as the Tax Code was published and made known publicly, you presumed then that importation of agricultural, marine, livestock and poultry in their original state are VAT-exempt and do not require application for ATRIG. cdtech In reply, please be informed that pursuant to Section 103(b) of the Tax Code, as amended, the sale or importation in their original state of agricultural and marine food products; livestock and poultry of a kind generally used as, or yielding or producing food for human consumption; and breeding stock and genetic materials therefor are exempt from VAT. Products classified in the abovementioned paragraph shall be considered in their original state even if they have undergone the simple processes of preparation or preservation for the market, such as freezing, drying, salting, smoking or stripping. Based on the foregoing facts, your importation of meat shall be exempt from value-added tax. (Refer for the unnumbered Ruling dated April 2, 1991). Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)