BIR Ruling [DA-489-06]

August 9, 2006 BIR RULING [DA-489-06] Section 109 (y); VAT Ruling No. 022-2000 Central Book Supply, Inc. 927 Quezon Avenue, Quezon City Attention: Mr. Cello V. Pinon Finance Manager Gentlemen : This refers to your letter dated March 17, 2006 requesting for a certification of being a non-VAT-registered entity. SHADcT It is represented that your company CENTRAL BOOK SUPPLY, INC. is engaged in the publishing business of law books in all branches both as principal and agent, as a printer, bookseller, book binders of newspapers, journals, magazines, books, and other literary works, and undertakings, lithographers, stereotypes, photographic printers, and other business similar or analogous to the foregoing, or any of them. In reply, please be informed that pursuant to Section 109, par. (y) of the Tax Code of 1997, as amended by R.A. 9337 and as implemented by SEC. 4.109-1(B)(r) of Revenue Regulations No. 16-2005, 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 imposition of the Value Added Tax. As such, regardless of the amount of the said transaction, you will not be subject to the VAT and consequently from the creditable VAT or to the 3% percentage tax under Section 116, in relation to Section 109(z) of the same Code. In view thereof, your business of publishing and selling of books is exempt from the payment of the Value Added Tax/Creditable Value Added Tax and from the 3% percentage tax. This ruling is being issued on the basis of the foregoing facts as represented. If upon investigation, it will be discovered that the facts are different, then this ruling shall be considered null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service