VAT Ruling No. 013-96

July 1, 1996 VAT RULING NO. 013-96 Sec. 103 (c) R.R. 7-95-000-013 Oversea Feeds Corporation 250 Ibuna St., San Juan, Metro Manila Attention: Engr . Napoleon G . Co VP/Manila Liaison Officer Gentlemen : This refers to your letter dated June 17, 1996, seeking clarification on whether your importation of Bangus (Milkfish) Fry, wherein, the Bureau of Customs is imposing 10% VAT, is really subject to VAT. LexLib In reply, please be informed that pursuant to Section 103 (c) of the Tax Code, as amended, and as implemented by Section 4.103-1 (B) of RR 7-95, pertinent portions of which are quoted as follows: "SEC. 4.103-1 (B) Exempt Transactions . The following shall be exempt from the VAT. xxx xxx xxx (c) Sale or importation of agricultural and marine food products in their original state, livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption; and breeding stocks and genetic material therefore. However, importation of meat shall be subject to VAT. xxx xxx xxx Marine food products shall include fish and crustacean, such as but not limited to, eels, trout, lobsters, shrimps, prawns, oysters, mussels and clams. cdt xxx xxx xxx (d) Sale or importation of fertilizer, seed, seedlings, and fingerlings; fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finish feeds (except specially feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets);" the importation of Bangus (Milkfish) Fry is exempt from the value-added tax. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue