S.A. Mable Media Specialist

August 22, 2008 BIR RULING [DA-(VAT-026) 172-08] DA434-07 S.A. Mable Media Specialist 826 Inocentes Street, Pag-Asa Mandaluyong City Attention: Ma. Salome A. Mable Proprietress Gentlemen : This refers to your letter dated May 19, 2008 stating that your company is duly registered with the Department of Trade and Industry (DTI) with DTI Registration No. 557769 dated September 11, 1998; and that it is engaged in the business of publishing newspapers, journals and periodicals. ATHCDa Based on the foregoing representations, you now request for an opinion that the publication of the said newspapers, journals and periodicals is exempt from value-added tax (VAT) pursuant to Section 4.109-1 (B) (r) of Revenue Regulations No. 16-2005, as amended, by Revenue Regulations No. 4-2007, implementing Republic Act (R.A.) No. 9337. In reply thereto, please be informed that Section 4.109-1 (B) (r) of Revenue Regulations No. 16-2005, as amended, provides that "(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;" shall be exempt from VAT. Prescinding from the above-cited provisions, it is undisputed that there are four (4) activities that are exempt from the coverage of VAT, i.e., sale, importation, printing and publication of books, newspapers, magazines, reviews and bulletins. Moreover, the features of the said items, like magazine should appear at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of paid advertisements. SUCH BEING THE CASE, this Office holds that the publication of the said newspapers, journals and periodicals by your company is exempt from VAT pursuant to Section 4.109-1 (B) (r) of Revenue Regulations No. 16-2005, as amended by Revenue Regulations No. 4-2007. aDIHTE 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. Very truly yours, (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service