VAT Ruling No. 064-97

October 17, 1997 VAT RULING NO. 064-97 Sec. 103 (d); 000; 064-97 Philippine Association of Feed Millers, Inc. Rm. 302 Maligaya Building III 430 E. Rodriguez Sr., Blvd., Cubao, Quezon City Attention: Mr . Edward R . Acosta President Phil . Association of Feed Millers, Inc . Mr . Renato Eleria Vice-Chairman National Federation of Hog Farmers Gentlemen : This has reference to your letter dated September 19, 1997 requesting a ruling that your importation of tapioca pellets as a feed ingredient be exempted from the imposition of the value-added tax pursuant to Sec. 103(d), NIRC, as amended by RA 7716, as further amended to RA 8241. In support of your claim for exemption, you have attached hereto a written certification from the Bureau of Animal Industry that, indeed, tapioca pellets are feed ingredients. In reply, please be informed that under the old VAT Law as promulgated by Executive Order No. 273, the only animal feed ingredients granted exemption from the value-added tax were the soya beans and fish meal. However, with the advent of the Expanded Value-Added Tax Law under Republic Act No. 7716 as implemented by Revenue Regulations No. 7-95, the exemption privilege on animal feed ingredients was expanded to include other animal feed ingredients whether locally produced or imported except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as pets. (Sec. 103(d), NIRC, as amended) The same exemption was provided in RA 8241 which took effect on January 1, 1997. Further, to enjoy this exemption, it is required that there should be a written certification from the Bureau of Animal Industry that the ingredients thus sold or imported are those to be used in regular animal feeds. On the basis of the foregoing, this Office is of the opinion and it hereby holds, that your importation of tapioca pellets is exempt from the imposition of value-added tax provided that for every importation a certification is obtained from the Bureau of Animal Industry that such tapioca pellets are for livestock, poultry and agriculture feeds use only. This ruling is being issued on the basis of the facts represented, thus, the same shall be considered void, if upon investigation, said ingredients are to be used for purposes other than that for which it was granted exemption. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue