BIR Ruling No. 509-2020

REPUBLICOF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Code of 1997; Sec.109(1A) of the Tax

VAT-0509-2020

SEP 0 9 2020

Buting, Pasig City BERRY FOODSOURCE,INC. ISFC Bldg., 88 San Guillermo Ave.

Attention : MR.ROY P. SEE

General Manager

Gentlemen:

FOODSOURCE, INC. for certificate of exemption from value-added tax (VAT) on its importation and distribution of dried raisins, pursuant to Section 109 (1)(A) of the 1997 Tax Code, as amended. This refers to your letter dated January 19, 2017, requesting on behalf of BERRY

Documents submitted show that BERRY FOODSOURCE, INC.,with

existing under Philippine laws; that it is duly registered with the Securities and Exchange that as shewn in its Articles of Incorporation, its primary purpose is to operate, engage, Commission (SEC) under SEC Reg. No. carry on the business of manufacturing of food products such as edible oil. Taxpayer's Identification Number (TIN) dated November 29, 2012; and is a corporation organized and

It isrepresented that BERRY FOODSOURCE, INC. was issued a Certificate of

dried pepper and roasted coffee powder. Number Registration on November 10, 2016 by the Bureau of Plant Industry under Registration valid until November 10, 2019 as an importer of dried raisins,

amended by Republic Act No. 10963, provides for the exemption from VAT on the sale In reply, please be informed that Section 109 (1)(A) of the Tax Code of 1997, as

or importation of dried raisins. The aforesaid provision reads, viz.:

SEC.109. Exempt Transactions. -- (1) Subject to the provisions of subsection (2) hereof, the following transactions shall be exempt from the value-added tax:

XXX XXX XXX

A) Sale or importation of agricultural and marine food

products in their original state, livestock and poultry of kind generally

Berry Foodsource, Inc. VAT-050g -2020 SEP 0 9 2020 Page 2 of 2

breeding stock and genetic materials therefore. used as, or yielding or producing foods for human consumption; and

shall be considered in their original state even if they have undergone "Products classified under this paragraph and paragraph (a)

the simple processes of preparation or preservationfor the market, such as freezing, drying, salting, broiling, roasting, smoking or stripping. Polished and/or husked rice, corn grits, raw cane sugar and molasses, and ordinary salt shall be considered in their original state. " (Emphasis supplied)

XXX XXX XXX

from 12% VAT pursuant to Section 109 (1)(A) of the Tax Code of 1997, as amended. freezing, drying, salting, broiling, roasting, or stripping. The type of processing is limited to the.aforementioned simple processes. Otherwise, the same may no longer be Agricultural products are considered remaining in their original state even if they have undergone the simple process of preparation or preservation for the market, such as considered agricultural product in its original state. Moreover, the VAT exemption is limited in application -- it refers only to such products which are intended as food for agricultural products in their original state for human consumption, is considered exempt human consumption. Based on the above-cited provision, the importation and distribution/sale of

its original state and intended for human consumption, the importation and distribution/sale thereof by BERRY FOODSOURCE, INC. is exempt from the twelve percent (12%) VAT pursuant to Section 109(1) (A) of the 1997 Tax Code, as amended In view of the foregoing, since dried raisin is basically an agricultural product in

existing authority to import issued by the Bureau of Plant Industry. It is understood that the importation of such product shall be covered by valid and

However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. This ruling is being issued on the basis of the foregoing facts as represented.

Very truly yours,

1aarn

CAESAR R.DULAY Commissioner of Internal Revenue

K-1-JAC 036570 o