VAT Ruling No. 110-90

May 14, 1990 VAT RULING NO. 110-90 Sulfate Chemicals, Inc. #88 North Diversion Service Road Paso de Blas, Valenzuela Metro Manila Attention: Mr . Gilbert Ma . Sison Chief Accountant and OIC S i r : This refers to your letter dated August 15, 1989, requesting for a ruling on whether or not pulverized limestone and aluminum sulfate are exempted from the value added tax. In reply, please be informed that: (1) the sale of pulverized limestone which is basically and widely used as building materials is subject VAT because it is not classified as a chemical for pesticide. The exemption granted to ingredients for animal feeds is limited only to soya and fish meals under Section 103(c) of the Tax Code, as amended by E.O. NO. 273. For excise tax purposes, pulverized limestone, as a quarry product, is subject to 3% ad valorem (excise) tax based on the actual market value of the annual gross output thereof at the time of removal in the case of those locally extracted or produced; or the value used by the Bureau of Customs in determining tariff and customs duties, net of excise tax and VAT, in the case of importation [Section 151(2) of the Tax Code, as amended]; (2) The sale of aluminum sulfate is also subject to VAT but not to excise tax because the same is a chemical compound which is not in its elemental state anymore since it has undergone chemical process. LibLex Very truly yours, JOSE U. ONG Commissioner of Internal Revenue