VAT Ruling No. 063-90

March 3, 1990 VAT RULING NO. 063-90 L & S Chemical Supply 111 Rizal Avenue, Tonsuya, Malabon, Metro Manila Attention: Mr . Liberato S . De Jesus General Manager Gentlemen : This refers to your letter dated January 26, 1990 requesting for a ruling that your importation of potassium nitrate is exempt from the value-added tax. As represented, your company is registered with the Fertilizer and Pesticide Authority (FPA Registration No. 1-51P-011) as an importer-distributor of potassium nitrate which is a chemical and basically used as a flower inducer. In reply, please be informed that pursuant to Section 3 of Presidential Decree 1144, "Fertilizer includes any substance-solid or liquid-or any nutrient element or elements-organic or inorganic-singly or in combination with other materials, applied directly to the soil for the purpose of promoting plant growth, increasing crop yield or improving their quality". On this basis, the chemical known as potassium nitrate being a flower inducer is a fertilizer. Accordingly, your importation of the same is exempt from the 10% value-added tax pursuant to Section 103(c) of the Tax Code, as amended by E. O. No. 273 as implemented by Section 9(b)(3) of Revenue Regulations No. 5-87. aisadc This finds support in BIR Ruling No. 217-88, May 26, 1988. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue