VAT Ruling No. 028-90

February 14, 1990 VAT RULING NO. 028-90 100 (a)-000-00-028-90 Filipinas Electro Industrial Corp. 341 McArthur Highway Valenzuela, Metro Manila Attention: Mr . Bienvenido S . Borromeo Chief Accountant S i r s : This refers to your application for zero rate filed last August 10, 1989 on your sale of agricultural machinery and implements to Bulacan Prawn Products Multi-Purpose Cooperative, Inc. on the basis of its exemption privilege under PD 175, as amended (The Cooperative Law). In reply, please be informed that there is no legal basis for the approval of your application for zero rate. By virtue of Executive Order No. 93, all tax and duty exemption privileges granted to cooperatives were withdrawn (except for electric cooperatives, whose exemption privileges were restored by FIRB Resolution No. 24-87). Such being the case, your sale of agricultural machinery and implements are subject to the 10% VAT pursuant to Section 100(a) of the Tax Code, as amended. prcd Please be guided accordingly. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue