VAT Ruling No. 057-89
VAT Ruling No. 057-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 6, 1989
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March 6, 1989 VAT RULING NO. 057-89 Nestle Philippines, Inc. 335 Sen. Gil J. Puyat Ave. Makati, Metro Manila Attention: J . O . Lardizabal Sr . Vice President Finance Department Gentlemen : This has reference to your letter dated November 10, 1988, stating that you are a manufacturer of powdered coffee which are packed and sold in various containers like bottles, glass jars, cans, aluminum pouches and plastic bags. It was stated that the powdering process for coffee neither alters the composition of coffee nor requires the addition of chemicals to the powder which therefore means that it is still in its original state and hence, exempt from the 10% value-added tax. In this regard, please be informed that powdered coffee is exempt from VAT under Section 103 (a) of the Tax Code only if packed in bags crudely sealed by knotting the ends of the bag. However, powdered coffee packed and sold in bottles, glass jars, cans, aluminum pouches and sachets are already subject to VAT. cdLL Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner
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