BIR Ruling No. 491-2020

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Sec.1091(B) of the Tax Code of 1997; BIR Ruling No. 27-2018 VAT-0491-2020 SEP 0 8 2U20

BON AFFAIRE TRADING, INC. Rm. 310 MN Square Bldg., 678 Shaw Blvd.. Kapitolyo Pasig 1603

Attention : Ms. Mary Ann Salcedo

President

Gentlemen:

This refers to your letter dated July 19, 2019, requesting on behalf of BON AFFAIRE TRADING, INC. certificate of exemption from value-added tax (VAT) on its sale or importation of fertilizers pursuant to Section 109 (1)(B) of the 1997 Tax Code, as amended.

Documents submitted show that BON AFFAIRE TRADING, INC., with

Taxpayer's Identification Number (TIN) is a corporation organized

and existing under Philippine laws; that it is duly registered with the Securities and

Exchange Commission (SEC) under SEC Reg. No. ; and that as shown in

its Articles of Incorporation, its primary purpose is to engage in, conduct, and carry on

the business of import/export, buying, selling, distributing, marketing at wholesale-and-

retail-in so far as may be permitted by law, all kinds of goods, wares and merchandise of

every kind and description.

It is represented that BON AFFAIRE TRADING, INC., was issued a Certificate

of Product Registration by the Fertilizer and Pesticide Authority (FPA) and was issued a

License as National Distributor of Fertilizer, to wit:

Reg. No. October 29,2018 Date of Issue Nano Amino Tablet Product For use in Pechay

Inorganic Fertilizer

In reply, please be informed that Section 109 (1)(B) of the Tax Code of 1997, as

amended by Republic Act No. 9337, provides for the exemption from VAT on the sale

or importation of fertilizers for use in vegetables. 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:

Bon Affaire Trading, Inc. Page 2 of 2 VAT0&91-2020 SEP 0 8 2020

XXX XXX XXX

fingerlings; fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds (except specialty feeds for race horses, B) Sale or importation of fertilizers; seeds, seedlings and

considered as pets) fighting cocks, aquarium fish, zoo animals and other animals generally

XXX XXX XX

Based on the above-cited provision, the importation and distribution/sale of

fertilizers for use in vegetables (Pechay), is considered exempt from VAT pursuant to

Section 109 (1)(B) of the Tax Code of 1997, as amended.

In view of the foregoing, since the FPA has issued a Certificate of Product

Registration for Nano Amino Tablet Inorganic Fertilizer, the importation and

distribution/sale thereof by BON AFFAIRE TRADING, INC. is exempt from the twelve

percent (12%) VAT pursuant to Section 109 (1)(B) of the Tax Code of 1997, as amended.

(BIR Ruling No. 27-2018 dated January 18, 2018)

This ruling is being issued on the basis of the foregoing facts as represented.

However, if upon investigation, it will be disclosed that the facts are different, then this

ruling shall be considered null and void.

Very truly yours,

meron

CAESAR R. DULAY Commissioner of Internal Revenue W 036579

K-1-JAC

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