VAT Ruling No. 064-88

March 11, 1988 VAT RULING NO. 064-88 100/103 (b)-000-00-064-88 Mr. Aniceto M. Fernandez 2188 Azucena St., Sta. Ana, Manila S i r : In reply to your query regarding the applicability of the value-added tax to products which have undergone simple processes for the market, please be informed that pursuant to Sec. 103(b) of the Tax Code, as amended by E.O. 273, exempt transactions cover sale in their original state of agricultural and marine food products; livestock and poultry for human consumption, etc. Products shall be considered in their original state in this case, even if they have undergone the simple processes of preparation or preservation for the market, such as freezing, drying, salting, smoking or stripping. Therefore, tocino, chitcharon and bacon are subject to the 10% value-added tax as these products are considered, not being in their original state because it is likely that chemicals must be added to them for purposes of preservation. On the other hand, ground beef, merely chopped and frozen, qualifies for exemption from VAT. cdtech Very truly yours, BIENVENIDO A. TAN, JR. Commissioner of Internal Revenue