August 24, 2009
VAT RULING NO. 011-09
106 & 109 (B)
Bureau of Customs
Laguna Customs Office
Sta. Rosa City, Laguna
Attention: Mr. Hermogenes C. Caylan III
Collector of Customs II, Port Collector
Gentlemen :
This refers to your letter dated February 17, 2009 requesting legal opinion on whether or not the sale of the by-product of a value-added tax (VAT) exempt material is likewise exempt from VAT. EHaASD
It is represented that Universal Harvester Incorporated (UHI) is an economic zone locator at Carmelray Industrial Park II, Special Economic Zone, Calamba City, under the Philippine Economic Zone Authority (PEZA); that UHI is selling Hydrochloric Acid; that its local sale is controlled by Philippine Drug Enforcement Agency (PDEA); that on November 26, 2008, the Bureau of Internal Revenue (BIR) issued BIR Ruling No. DA-(VAT-047) 465-2008 to UHI which ruled that the local sale of Hydrochloric Acid is exempt from VAT, as follows:
"In view of the foregoing and considering that Muriate of Potash had been issued a Certificate of Product Registration by the Fertilizer and Pesticides Authority, Universal Harvester, Inc.'s importation of such fertilizer and the...
