BIR Ruling [DA-378-04]

July 7, 2004 BIR RULING [DA-378-04] 109 (y); VAT-043-2002 JC Lucas Creative Products, Inc. 162 Balingasa Street Quezon City Attention: Mr. Joseph K. Wu President Gentlemen : This refers to your letter dated August 30, 2002 requesting for exemption from the payment of value-added tax, relative to your printing and manufacturing of posters, novelty items, supplementary educational books and tutorial items for growing children such as bilingual books, jigsaw puzzles, memory game, flashcards and telling time posters, pursuant to Section 109(y) of the Tax Code of 1997. In reply thereto, please be informed that under Section 109(y) of the Tax Code of 1997, 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 which is not devoted principally to the publication of paid advertisements, is exempt from the imposition of the value-added tax. In view thereof, your gross sales income from the printing and manufacturing of the above-mentioned educational items is exempt from the payment of value-added tax. ( BIR VAT Ruling No. 043-2002 dated July 24, 2002 ) 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. DTIaHE Very truly yours, (SGD.) JOSE MARIO C. BUAG Deputy Commissioner Legal & Inspection Group