VAT Ruling No. 055-01

August 29, 2001 VAT RULING NO. 055-01 Sec. 109 (d) VAT Ruling No. 005-2001 Citadel Enterprises Plaridel, Bulacan Attention: Ms . Jinky Tobiano Gentlemen : This refers to your letter dated June 29, 2001 requesting for a ruling that your importation of feed products mentioned hereunder, with certificates duly issued by the Bureau of Animal Industry (BAI), is exempt from the payment of the value-added tax imposed under Section 109(d) of the Tax Code of 1997. The said feed products with corresponding BAI certifications are listed as follows: White Lupins Feed Ingredient per BAI Certification No. CIP 01-3030 Safflower Feed Ingredient per BAI Certification No. CIP 01-9128 Sunflower Feed Ingredient per BAI Certification No. CIP 01-9127 Black Soya Beans Feed Ingredient per BAI Certification No. CIP 01-2929 Vetch Feed Ingredient per BAI Certification No. CIP 00-10031 White Peas Feed Ingredient per BAI Certification No. CIP 00-7831 Canary Seed Feed Ingredient per BAI Certification No. CIP 00-10048 Millet Feed Ingredient per BAI Certification No. CIP 01-2910 Red Millet Feed Ingredient per BAI Certification No. CIP 00-10047 Red Sorghum Feed Ingredient per BAI Certification No. CIP 00-9124 In reply, please be advised that Section 109(d) of the Tax Code of 1997 provides that the 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) shall be exempt from value-added tax. Considering that the above items have been certified by the Bureau of Animal Industry (BAI) as feed ingredients pursuant to Section 4 of Republic Act No. 1556, otherwise known as the "Livestock and Poultry Feeds Act", the importation of the subject feed ingredients is exempt from value-added tax pursuant to Section 109(d) of the Tax Code, supra. (VAT Ruling No. 005-2001 dated February 16, 2001). cIECTH 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. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group