VAT Ruling No. 015-91

March 19, 1991 VAT RULING NO. 015-91 Bayer Philippines, Inc. Equitable Bank Bldg. Ortigas Ave. Cor. Roosevelt St. Greenhills, San Juan Metro Manila Attention: Ms . Araceli V . Gomez Treasurer & Finance Manager S i r s : This has reference to your letters dated March 14, 1990 and May 28, 1990 wherein it is stated that the following chemicals are certified by the Fertilizer and Pesticide Authority to be component materials used in the manufacture of insecticides that control/kill leaf hoppers, bean bugs, aphids, thrips, boll weevil, mites and other pests infesting agricultural crops: Name of Chemical Name of EPA Registered Pesticide 1. Baykanol SL Etrofolan 50 WP 2. Erkantol BXG Etrofolan 50 WP 3. Diethyleneglycol Tamaron 600 LC 4. Polyvinyl Alcohol Furadan 3G, 5G & 10G 5. Epoxidized Soybean Oil (ESO) Marshal 150 EC On this basis, you requested a ruling as to VAT taxability of the aforecited chemicals. In reply, please be informed that in the definition of the term "pesticide" under P.D. 1144, insecticides which are used for agricultural and livestock purposes are deemed included. Such being the case, your importation of these chemicals is exempt from VAT pursuant to Section 103(c) of the Tax Code. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue