BIR Ruling [DA-095-04]

March 1, 2004 BIR RULING [DA-095-04] 109 (n) VAT Ruling Nos. 220-90; 304-88 Mr. Eduardo Castrillo Rm. 302 3/F IDC Place Zapote Corner Ponte St. Makati City S i r : This refers to your letter dated August 28, 2003 requesting for a confirmation of your opinion that being an artist, the works of art which you created and sold is not subject to the value-added tax under Section 109(n) of the Tax Code of 1997. It is represented that you have just finished a sculptural art mural for the lobby of Ambassador Yuchengco's RCBC Plaza in Makati City and that such artistic work is currently being subjected to the value-added tax. In reply, please be informed that sale of artwork is exempt from VAT pursuant to Section 109(n) of the Tax Code of 1997 if the seller is the artist himself. aScIAC Accordingly, the sculptural art mural which you sold to RCBC Plaza, being considered as a work of art under Section 109(n) of the Tax Code of 1997, is exempt from VAT. 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 from that represented, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group