VAT Ruling No. 001-98

January 9, 1998 VAT RULING NO. 001-98 Sec. 103 (d)-00-001-98 Rudolf Lietz, Incorporated 142 Legaspi Street Legaspi Village Makati City Attention : Ms . Marietta N . Portillo Administrative Officer-Imports Gentlemen : This refers to your letter dated July 7, 1997 requesting for a ruling that your sale or importation of poultry feeds ingredients like Vitamins A, D and K is exempt from value-added tax. LexLib It is represented that you are registered with the Department of Trade and Industry with Certificate of Registration No. 0439967 dated April 7, 1997 and with the Securities and Exchange Commission; that you are primarily organized to carry on a general scale of business enterprise, by acquiring, buying, importing, exporting, distributing, marketing, selling and disposing, in wholesale, generally without limitation as to class of products and merchandise including but not limited to pharmaceutical chemicals (like Menadione Sodium Bisulfite, Lutavit A500 Plus, Lutavit A500S and Duphasol D500), and to act as agents, distributors and intendors, manufacturers, representatives and brokers, in any representative capacity, for foreign and domestic companies, whether natural or juridical persons; and that the above-mentioned products have passed the Quality Control Department of their respective laboratory. In reply, please be informed that pursuant to Section 103(d) of Revenue Regulations No. 7-95, implementing R.A. No. 7716, as last amended by R.A. No. 8241, the sale or importation of fertilizers; seeds, seedlings and fingerlings; fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds (except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets) are exempt from value-added tax. However, in the absence of a showing that the poultry feeds ingredients like Vitamins A, D and K are indeed essential ingredients in the manufacture of poultry feeds as certified to by the Bureau of Animal Industry, the sale or importation of the aforementioned poultry feeds shall be subject to value-added tax. Accordingly, this Office hereby denies your request for tax exemption for lack of legal basis. Very truly yours, SIXTO S. ESQUIVIAS IV Deputy Commissioner Legal Enforcement Group