BIR Ruling No. 27-2018

REPUBLIC OF THE PHILIPPINES

BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE

Quezon City

Sec.1091(B of the Tax

Code of 1997: BIR Ruling No.371-13

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Makati City 1223 17TH Floor, 6750 Ayala Office Tower, Ayala Ave., ALL AROUND ORGANIC FERTILIZER,INC.

Attention : Mr. Leonel Piczon

President

Gentlemen:

This refers to your letter dated April 3, 2017. requesting on behalf of ALI AROUND ORGANIC FERTILIZER,INC. certificate of exemption from value-added

pursuant to Section 109 (1)(B) of the 1997 Tax Code, as amended. tax (VAT) on its importation and distribution of natural farm organic plant supplement

Documents submitted show that ALL AROUND ORGANIC FERTILIZER.

organized and existing under Philippine laws; that it is duly registered with the Securities INC., with Taxpayer's Identification Number (TIN) , is a corporation

and Exchange Commission (SEC) under SEC Reg. No. dated July 1. 2015; and that as shown in its Articles of Incorporation, its primary purpose is to engage in the manufacturing, importation, selling and distribution of fertilizer on wholesale and all related activities.

It is represented that ALL AROUND ORGANIC FERTILIZER, INC. was issued a Certificate of Registration on October 2016 by the Bureau of Agriculture and Fisheries Standards (BAFS) under Registration Number valid until October 2019 and was issued a Certification by BAFS dated February 17,2017, certifying that ALL AROUND ORGANIC FERTILIZER, INC. is a duly licensed importer/distributor of Natural Farm Organic Plant Supplement and interposes no objection to the importation of 82 pallets (1,934 boxes) of the product with 26,643kg gross weight, via Winchester Strait 159S per Bill of Lading No.

amended by Republic Act No. 9337, provides for the exemption from VAT on the sale or importation of fertilizers for use in grain crops. The aforesaid provision reads, viz.: In reply, please be informed that Section 109 (1)(B) of the Tax Code of 1997, as

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

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All Around Organic Fertilizer,Inc. 118-2018

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B). Sale or importation of"fertilizers; seeds, seedlings and 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,

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

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Natural Farm Organic Plant Supplement for use in Grain Crops, is considered exempt from VAT pursuant to Section 109 (1)(B) of the Tax Code of 1997, as amended. It is Based on the above-cited provision, the importation and distribution/sale of

FERTILIZER, INC. is in compliance with organic standards for the following product: Certification dated July 12, 2016, certifying that ALL AROUND ORGANIC noted that the Organic Certification Center of the Philippines (OCCP) issued a

Product Area Units Quantity Status Natural Farm

Fertilizer Organic Liquid NA Organic

In view of the foregoing, since the BAFS has already certified that the Natural

distribution/sale thereof by ALL AROUND ORGANIC FERTILIZER,INC. is exempt Farm Organic Plant Supplement is/are to be used for Grain Crops, the importation and from the twelve percent (12%) VAT imposed under Sections 106 (A) and 107 (A) of the

1997 Tax Code, as amended, on the sale and importation of goods. (BIR Ruling No. 371 13 dated October 10, 2013)

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.

segama

CAESAR R.DULAY Commissioner of Internal Revenue 012629

K-1-JAC