Transactions and person not subject to percentage tax.
Section 188
SEC. 188. Transactions and person not subject to percentage tax. — In computing the tax imposed in Sections one hundred eighty-four, one hundred eighty-four-A, one hundred eighty-five, one hundred eighty-five-A, one hundred eighty-five -B, and one hundred eighty-six and one hundred eighty-six -B, transactions in the following commodities shall be excluded. (a) Articles subject to tax under Title IV of this Code. (b) Agricultural food products, ordinary salt and all kinds of fish and its by-products, whether in their original state or not, except those enumerated under Section 186-E. Agricultural non-food products, whether in their original state or not when sold, bartered or exchanged by the producer or owner of the land where produced. The phrase "whether in their original state or not" means the transformation of said products by the application of simple processes to preserve or otherwise to prepare said products for the market such as freezing, drying, salting, smoking or stripping. (c) Minerals and mineral products whether in their original state or not when sold, bartered or exchanged by the lessee, concessionaire or owner of the mineral land from which removed. (d) Articles subject to tax under Section one hundred eighty-nine of this Code. (e) Articles shipped or exported by the manufacturer or producer, irrespective of any shipping arrangement that may be agreed upon which may influence or determine the transfer of ownership of the articles so exported: Provided, however, That sales to tourists, which are paid for in the foreign currency and on which sales tax had been previously paid, shall be considered export sales, if the articles purchased are actually removed by them from the Philippines upon their departure. Provided, further, That if the seller is other than the manufacturer or importer, he may credit the amount corresponding to the sales tax on the articles sold, against his other tax liabilities. The following shall he exempt from the percentage taxes imposed in Sections one hundred eighty-four, one hundred eighty-five, and one hundred eighty-six: (a) Persons whose gross monthly sales or receipts do not exceed two hundred pesos. (b) All Filipinos in public market places selling at retail all forms or kinds of food products, meat, fruits, vegetables, game, poultry fish and other raw and/or cooked food products. (c) Peddlers and sellers at fixed stands and other similar selling places engaged exclusively in the sale at retail of domestic meat, fruits, vegetables, game, poultry, fish, and similar domestic food products, whose total stock in trade in any one day does not reach a retail value of one hundred pesos. (d) Producers of commodities of all classes working in their own homes, consisting of parents and children living as one family, when the value of each day's production by each person capable of working is not in excess of five pesos. (e) Persons importing articles under contract for the exclusive use of the Armed Forces of the Philippines.