BIR Ruling [DA-148-04]

March 29, 2004 BIR RULING [DA-148-04] 109 (y); VAT Ruling No. 022-2001 Angels Publishing House, Inc. 127 S. Guzman Street San Juan, Metro Manila Attention: Ms. Ma. Regina R. Herrera President Gentlemen : This refers to your letter dated January 15, 2003 requesting for a Certificate of VAT Exemption pursuant to Section 109(y) of the Tax Code of 1997. It is represented that Angels Publishing House, Inc. (Angels) is a newly organized publication company and will be publishing a bi-monthly trade magazine with fixed price for subscriptions; that although Angels solicit advertisements, it is basically a trade publication devoted to articles about food and beverages; and that the purpose for which the corporation is incorporated is to carry on business as proprietors and publishers of newspapers, journals, magazines, books and other literary work and undertakings; and also to carry on business as printers, booksellers, bookbinders, paper makers, stationers engraver, photographers, photographic printers, stereotypers, electro-typers, lithographers, machinists, silkscreeners, or any other business or manufacture that may seem expedient. ADcEST In reply, please be informed that pursuant to Section 109(y) of the 1997 Tax Code, "sale, importation, printing or publication of books and any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of paid advertisements" is exempt from the value-added tax (VAT). Such being the case, as book publisher/supplier, the proceeds derived from your sale and/or publication of books is exempt from VAT. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal and Inspection Group