Meat and Bone Meal Subject to VAT

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BIR REVENUE MEMORANDUM CIRCULAR NO. 43-92: Meat and Bone Meal Subject to VAT

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Title Supreme Court: Meat and Bone Meal Subject to VAT

Law: Bir Revenue Memorandum Circular No. 43-92

Decision Date: Jul 28, 1992

The BIR Revenue Memorandum Circular No. 43-92 clarifies that meat and bone meal is subject to VAT, reaffirming that only fish meal and soya beans are tax-exempt ingredients in animal feeds.

administrative law

revenue memorandum

A

Legal Interpretation and Application

The memorandum emphasizes the principle "dura lex sed lex" (the law is harsh, but it is the law), highlighting strict adherence to statutory language where the law is clear.
Judicial precedent (Ablan, Sr. vs. Madarang, G.R. No. L-32963) supports the position that no interpretation is needed when the legislative provision is explicit.

Previous VAT Rulings Maintained

VAT Ruling Nos. 021-90 and 244-90 affirmed the limited tax exemption only to fish meal and soya beans as animal feed ingredients.
This memorandum reaffirms these prior rulings, denying VAT exemption status to meat and bone meal.

Administrative Directives and Enforcement

The issuance directs all concerned parties to widely disseminate and adhere to this clarification on VAT treatment.
It serves as an authoritative interpretation from the Bureau of Internal Revenue to ensure consistent tax enforcement.

Legal and Tax Compliance Implications

Businesses dealing in meat and bone meal as animal feed ingredients are subject to VAT as prescribed by law.
Misapplication of VAT exemptions to meat and bone meal may lead to non-compliance issues and possible penalties under tax regulations.

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