VAT Ruling No. 028-97

April 1, 1997 VAT RULING NO. 028-97 Sec 103 (c); 28-97 National Food Authority 101 E. Rodriguez Sr. Ave. Quezon City Attention: Joemari D . Gerochi Acting Administrator Gentlemen : This refers to your letter dated March 24, 1997 regarding your request for confirmation of your opinion that the sale or importation of polished and/or husked rice and corn grits are exempt from the value added tax. casia It is represented that the National Food Authority ("NFA") has the exclusive authority to undertake rice imports as provided under Presidential Decree No. 4 and Executive Order 1028. Likewise, the NFA also undertakes imports of corn for buffer stock purposes and as cargo consolidator under the GATT's MAV importation. At the present, the NFA has already booked for importation of some 655,000 MT rice and 110,000 MT of yellow corn. You now claim that the importation of the above products are exempt from value added tax since these are agricultural food products in their original state. In reply, please be informed that pursuant to Section 103 (c) of the Tax as amended by Republic Act Nos. 7716 and 8241, pertinent portions of which read: "SEC. 103. Exempt Transactions . The following shall be exempt from the value-added tax: "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 stock and genetic materials therefor." the importation of polished and/or husked rice and corn grits are exempt from the value added tax. Very truly yours, ALICIA L. TOMACRUZ Head Revenue Executive Assistant Chairman, VAT Review Committee