VAT Ruling No. 081-01

December 3, 2001 VAT RULING NO. 081-01 Sec. 109 (c) VAT Ruling 077-99 Prime Cargo Handlers, Inc. Room 1, Ground Floor, RBAP Bldg. A. Soriano Avenue cor. Arzobispo St. B. Intramuros, Manila Attention: Mr. Manolo G. Sy Gentlemen : This refers to your letter dated, July 16, 2001, seeking clarification whether the following alleged food products imported by your clients are subject to 10% value added tax (VAT) or VAT-exempt: 1. Pistachios in shell; 2. Raw pistachios kernel (shelled); 3. Raw whole cashew nuts; 4. Raw split cashew nuts; 5. Raw groundnuts (shelled with skin); 6. Melon seeds (salted); 7. Squash seeds (salted); 8. Raw almonds (shelled); 9. Raw sliced almonds; 10. Raw slivered almonds; 11. Raw walnuts (shelled); 12. Raw pecan (shelled); 13. Raw macadamias (shelled); and 14. Peanuts in shell (roasted). In reply, please be informed that "(c) Sale or importation of agricultural and marine food products in their original state, livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption; and breeding stock and genetic materials therefor. 'Products' classified under this paragraph and paragraph (a) shall be considered in their original state even if they have undergone the simple processes of preparation or preservation for the market, such as freezing, drying, salting, broiling, roasting, smoking or stripping .' . . ." 1 Since the above enumerated agricultural food products are embraced by the term " agricultural food products in their original state " their importation is exempt from VAT pursuant to Section 109 (c), NIRC of 1997. This ruling serves as your clients' ATRIG 2 in connection with their above mentioned importation. This ruling is being issued on the basis of the foregoing facts as represented. However, if it will be discovered upon investigation that the facts are different, then this ruling shall be considered null and void from the date of issue. Very truly yours, Commissioner of Internal Revenue By: (SGD.) EDMUNDO P. GUEVARA Deputy Commissioner Legal and Inspection Group Footnotes 1. Sec. 109 (c), NIRC of 1997; See also Sec. 4.103-1 (B) (c), Revenue Regulations No. 7-95 and VAT RULING No. 077-99, dated August 6, 1999. 2. BIR RULING No. 088-95, June 15, 1995.