Classification of Bowling as a Sport

May 24, 1989 VAT RULING NO. 136-89 Mr. Wilfredo Lopez Lagao Road General Santos City S i r : This refers to your letter dated February 27, 1989, inquiring whether or not the business activity of buying and selling cotton or raw cotton lint is subject to the payment of the 10% value-added tax (VAT). IaECcH In reply, please be informed that the sale of cotton and raw cotton lint as a non-food agricultural product in its original state is exempt from VAT if it is sold by the original producer himself [Section 103 (a) of the Tax Code, as amended]. This exemption is not extended to the aforecited activity since the sale is already considered a subsequent sale made by a person other than the producer of the product. Such being the case, the buying and selling of cotton or raw cotton lint is subject to the 10% VAT pursuant to Section 100 (a) of the Tax Code, as amended. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue