Amendment to the Consolidated Value-Added tax Regulations

February 20, 1996 REVENUE REGULATIONS NO. 05-96 SUBJECT : A mendment to the Consolidated Value-Added tax Regulation s TO : All internal Revenue Officers Concerned Pursuant to the provisions of Section 245 and 4 of the National Internal Revenue Code (NIRC), as amended, in relation to the provisions of Executive Order No. 273, as amended by Republic Act No. 7716, this Regulation is hereby promulgated to implement Section 102 of Title IV of the NIRC, as amended. SECTIONS 4.102-2 (b) (2) and 4.103-1 (B) (c) of Revenue Regulations No. 7-95 are hereby amended to read as follows: Section 4.102-2 (b) (2) "Services other than processing, manufacturing or repacking for other persons doing business outside the Philippines for goods which are subsequently exported, as well as services by a resident to a non-resident foreign client such as project studies, information services, engineering and architectural designs and other similar services, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the BSP." Section 4.103-1 (B) (c) "Sale or importation of agricultural and marine food products in their original state, except importation of meat, livestock and poultry of a kind generally used as or yielding or producing foods for human consumption; and breeding stock and genetic materials therefor. However, importation of meat from a WTO (World Trade Organization) member shall be exempt from VAT." xxx xxx xxx "Polished and/or husked rice, corn grits and locally produced raw cane sugar and ordinary salt shall be considered as agricultural food products in their original state. Imported raw cane sugar, if originating from the territory of a WTO member, shall also be considered as agricultural food product in their original state." ROBERTO F. DE OCAMPO Secretary of Finance Recommending Approval: LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue