San Sebastian Publication House

July 8, 2009 BIR RULING [DA-(VAT-065) 357-09] 109 (R); DA-370-2005; DA-078-2007 San Sebastian Publication House 2/F Amante Building, No. 90 National Road Muntinlupa City Attention: Ms. Liza M. de Guzman Proprietress Gentlemen : This refers to your letter dated June 6, 2008 requesting for exemption from the payment of value-added tax on your printing or publication of books. From the documents submitted, it appears that San Sebastian Publication House is duly registered with the Department of Trade and Industry with Certificate of Registration No. 00034645 dated January 30, 2007; that it is also registered with the National Book Development Board with Certificate of Registration No. 0958 from July 18, 2007 until April 30, 2010; that its TIN No. is 931-869-732; and that based on the aforesaid documents, San Sebastian Publication House is engaged in the business of printing, publishing and distribution of books. In reply, please be informed that Section 109 (R) of the Tax Code of 1997, as amended, 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 (VAT). 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 (V) of the same Code. In view thereof, your business of publishing, printing and selling of books is exempt from the payment of the Value-Added Tax/Creditable Value-Added Tax and from the 3% percentage tax. However, if you have other transactions such as the printing of brochures which are subject to the Value-Added Tax, you will also be required to register your business as a VAT business entity and issue a separate VAT invoice/receipt to record such transactions. 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, Commissioner of Internal Revenue By: (SGD.) JAMES H. ROLDAN Assistant Commissioner Legal Service