RMC No. 55-2014: Clarifies the livestock and poultry feeds or ingredients used in the manufacture of finished feeds to be exempt from VAT

Key points

1. The exemption. The Section exempts from VAT the sale or importation of livestock and poultry feeds or ingredients used in the manufacture of finished feeds.
2. Ingredients with human food use. Some feed ingredients can also be used to produce food for human consumption. Their sale or importation is subject to VAT, because only feeds and ingredients meant for livestock and poultry feeds are exempt.
3. Showing eligibility. For exemption, it must be shown that the ingredient is unfit for human consumption or cannot be used to produce food for human consumption, as certified by the Food and Drug Administration.
4. VAT refund reminders. The circular also restates the VAT refund or credit procedure: a 120-day period for the Commissioner to act, complete documents under oath, and an appeal to the Court of Tax Appeals within 30 days from the denial or from the end of the 120 days.

Who is affected

• Sellers and importers of livestock and poultry feeds or feed ingredients

Deadlines and effectivity

• Issued June 27, 2014