VAT Ruling No. 017-04

June 2, 2004 VAT RULING NO. 017-04 Sec. 109 (d) Asia Pacific Golf Corporation No. 608 Sierra Madre St. cor. Pinatubo St. Mandaluyong City Attention: Ms. Annabelle T. Gueco Gentlemen : This refers to your letter dated November 21, 2003 requesting for a ruling as to whether importation and sale of fertilizer is exempt from VAT. It is represented that you are a VAT-registered company engaged in the importation and sale of fertilizer; that recently, you have imported fertilizer of turf grass; that you are selling your imported fertilizer as a non-VAT item; that on August 18, 2003, the Fertilizer and Pesticide Authority (FPA) issued you a Certificate of Product Registration (Turf Grass). You would like to be clarified now as to whether your sale of "turf grass" is exempt from VAT. In reply, please be informed that Section 109(d) of the Tax Code of 1997 provides as follows: "SEC. 109. Exempt Transactions . The following shall be exempt from the value-added tax: "xxx xxx xxx "(d) 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". In view of the foregoing and considering that your imported "turf grass" had been issued a Certificate of product Registration by the Fertilizer and Pesticide Authority, your subject importation or sale of turf grass is exempt from VAT. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation it will be disclosed that the facts are different, then this ruling shall be considered null and void. cTECHI Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group