BIR Ruling [DA-303-06]

May 10, 2006 BIR RULING [DA-303-06] Sections 109 & 116; DA-067-2004 & 364-2005 Ms. Sylvia J. Farolan Asean Ladies Circle (ALC) Department of Foreign Affairs Office of Protocol 2330 Roxas Boulevard, Pasay City M a d a m : This refers to your letter dated April 21, 2006 requesting on behalf of the Department of Foreign Affairs ASEAN Ladies' Circle (ALC) for a ruling that the printing of cookbook for sale with the aim of raising funds for its projects is exempt from value-added tax pursuant to Section 109(r) of the Tax Code of 1997, as amended by Republic Act No. 9337. It is represented that ALC has planned several projects to promote solidarity among the ASEAN member countries and camaraderie among the ALC members; that in order to raise funds for such worthy projects, ALC will cause the printing of a cookbook entitled "A Celebration of ASEAN Flavors" featuring the varied cuisines of the ASEAN region; and that the launching of the said cookbook will be made on the 12th ASEAN Summit and Related Events this coming August which the Philippines will be hosting. In reply, please be informed that Section 109(r) of the Tax Code of 1997, as amended, provides, viz.: "SEC. 109. Exempt Transactions . The following shall be exempt from the value-added tax: xxx xxx xxx (r) 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; . . . ." Accordingly, the printing of the above cookbook for sale with the aim of raising funds to finance the projects of ALC in connection with the hosting of the Philippines in the upcoming 12th ASEAN Summit and Related Events this coming August is exempt from VAT imposed under Section 106 of the 1997 Tax Code, as amended. Moreover, the sale of said cookbook to the public is exempt from VAT and from the 3% percentage tax imposed under Sections 106 and 116 of the same Code, respectively. (BIR Ruling Nos. DA-667-2004 dated December 28, 2004 and DA-364-2005 dated August 25, 2005). 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. EHaCID Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service