VAT Ruling No. 050-88

March 2, 1988 VAT RULING NO. 050-88 103 (b)-000-00-050-88 Mr. John Go President National Alcohol, Incorporated Suite 1105, Pacific Bank Makati Bldg. Makati, Metro Manila Dear Sir : This has reference to your letter dated January 27, 1988 requesting exemption from payment of VAT on your purchases of molasses. In reply, please be informed that pursuant to Sec. 9 (2) of RR 5-87, the exemption of the sale of sugar as an agricultural product in its original state is limited only to sugar. It is further provided that the exemption does not include molasses or bagasse or any products wherein sugar in any form forms part of the component thereof. For this, your purchase of molasses as a chief raw material for the production of alcohol is subject to VAT the amount of which can be credited against your output tax. Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue