BIR Ruling [DA-047-05]

January 28, 2005 BIR RULING [DA-047-05] Section 109 BIR Ruling No. 502-88 Living Church of God N.A. (Phils.), Inc . Unit 1714 Cityland Condominium 10 Tower I 6815 H.V. de la Costa St., Salcedo Village Makati City Attention: Mr. Abdon Buena Office Manager Gentlemen : This refers to your letter dated September 24, 2003 requesting, in effect, for a ruling exempting your importation of video and audio tapes from the payment of value-added tax. It is represented that the Living Church of God N.A. (Phils.), Inc. is a religious organization; that you will use the ruling exempting you from value-added tax (VAT) to facilitate the release of your packages containing video/audio tapes from the customs bonded warehouse of your courier; that the video/audio tapes are purely educational materials with no commercial value; and that the video/audio tapes are not for resale. In reply, please be informed that your request cannot be granted for lack of legal basis. Section 109 of the Tax Code of 1997 which enumerates the transactions exempt from VAT does not include importation of articles consigned to religious organizations. However, said importation may be exempted from VAT if it consists of books and any newspaper, magazine, review or bulletin as indicated in Section 109(y) of the same Code (VAT Ruling No. 502-88 dated October 14, 1988). HaAISC 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 as null and void. Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group