Prescribing the Conditions/Requirements for Exemption from the Value-Added Tax of Importation and/or Sale of Chemicals to be Used in the Formulation of Pesticides

August 12, 1991 REVENUE MEMORANDUM ORDER NO. 30-91 SUBJECT : Prescribing the Conditions/Requirements for Exemption from the Value-Added Tax of Importation and/or Sale of Chemicals to be Used in the Formulation of Pesticides TO : All Internal Revenue Officers and Others Concerned The following conditions/requirements are hereby prescribed to effect a uniform and equitable application of the VAT exemption on the importation or sale of chemicals to be used in the formulation of pesticides as envisaged under Section 103(c) of the Tax Code, as amended by Executive Order No. 273. I. Coverage - All chemicals certified to be essential in the formulation of pesticides by the Fertilizer and Pesticide Authority, including but not limited to xylene. II. Exempt Transaction - Sale or Importation of chemicals to be used in the formulation of pesticides by the importer-trader, or importer-manufacturer. III. Conditions/Requirements for VAT exemption. 1. The importer is duly accredited by the Fertilizer and Pesticide Authority as importer-trader, or importer-manufacturer, as the case may be. 2. If the importer is a trader, he shall execute an affidavit indicating the name and address of the purchaser-manufacturer. 3. The importer-trader shall show proof of sale of such chemicals within one (1) month from the date of release of his/its importation from customs custody. 4. Importers of tax-free chemicals (to be used in the formulation of pesticides) shall maintain a record of its stock indicating the date and quantity of importation, date and quantity of sales, name and address of the purchaser and update it in such a way that at any time its inventory of said chemicals could be checked by authorized internal revenue officers. This Order takes effect immediately. (SGD.) EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge