VAT Ruling No. 021-96

September 23, 1996 VAT RULING NO. 021-96 Sec. 103 (k)-000-021 Cooperative Development Authority 5th Floor Ben-Lor Bldg. 1184 Quezon Ave. Quezon City Attention: Candelario L . Versoza Executive Director Gentlemen : This refers to your letter dated January 29, 1996 requesting for a ruling as to the VAT exemption privilege of the Batama Farmers' Cooperative Marketing Association, Inc., an organization involved in the refining of raw sugar. In reply, please be informed that the VAT exemption privilege enjoyed by non-electric cooperatives under R.A. No. 6938 has been withdrawn by Republic Act No. 7716 effective January 1, 1996. However, pursuant to Section 103 (k) of the Tax Code, as amended, the milling of sugar cane to raw is exempt from VAT. Accordingly, notwithstanding the withdrawal of the VAT exemption privilege of non-electric cooperatives, tolling fees charged by the cooperative in milling sugar cane to raw sugar remain exempt from VAT. cdta Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue