BIR Ruling [DA-133-99]

March 3, 1999 BIR RULING [DA-133-99] Davao School for the Blind Km. 10, Bago Aplaya, Toril, Davao City Attention: Ms . Francisca Salazar Principal Gentlemen : This refers to your letter dated September 9, 1998 requesting exemption from value added tax on your importation of thirty (30) kgs. of used eyeglasses and thirty two (32) used typewriters especially used by the blind covered by Bill of Lading No. 3913 03017 of the vessel Katrine Maersk dated March 11, 1998, Invoice No. 895 dated March 25, 1998. It is represented that you are a non-profit organization serving the visually disabled; that The Hildesheimer Blindenmission in Germany donated the aforementioned articles for the blind which are important for their education; that these materials are all donations by the people of Germany; and that they are not for sale, barter or rent but purely for the use of the blind enrolled at the Davao School for the Blind. In reply, please be informed that the above request cannot be granted for lack of legal basis. Your importation of thirty (30) kgs. of used eyeglasses and thirty two (32) used typewriters especially used by the blind from abroad, is subject to 10% VAT based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus customs duties excise tax, if any, and other charges, such tax to be paid by the importer prior to the release of such goods from customs custody pursuant to Section 107(A) of the Tax Code of 1997. However, said importation, is exempt from the donor's tax if it is donated to a non-stock, non-profit corporation subject to the condition that not more than 30% of said gift shall be used by the donee foundation for administration purposes, in accordance with Section 101(A)(3) of the Tax Code of 1997 in relation to Section 104 of the same Code. (BIR Ruling No. 110-91 dated June 18, 1991) 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 null and void. LLpr Very truly yours, (SGD.) SIXTO S. ESQUIVIAS IV Deputy Commissioner (Legal and Enforcement Group)