VAT Ruling No. 058-91

June 26, 1991 VAT RULING NO. 058-91 1st Indorsement Respectfully returned to the Commissioner of Customs, Attention: The District Collector of Customs, Rolando E. Yebes, Bureau of Customs, District IV, Batangas, his letter dated May 8, 1991 with the information that the subject importation of Legaspi Import and Export Corporation of "XYLENE" is, as a general rule, subject to 10% VAT, pursuant to Section 101, NIRC, XYLENE being a chemical that can be used in the manufacture of different finished products. Under Section 103(c), NIRC, chemicals for the formulation of pesticides is exempted from the 10% VAT. However, in the case of Legaspi Import and Export Corporation, there is no showing that the subject importer will use its imported XYLENE as raw materials for its manufacture of pesticides and that the same will be used for agricultural purposes as duly certified by the Fertilizer and Pesticide Authority (FPA). [see VAT Ruling No. 197-90 dated September 12, 1990] Hence, unless the subject importer can show that it is a manufacturer of pesticides, duly certified by the FPA, its importation of XYLENE is accordingly subject to the 10% VAT. This clarifies BIR Ruling No. 092-91, in the case of Legaspi Import and Export Corporation dated May 27, 1991. cdta JOSE U. ONG Commissioner of Internal Revenue