Joselito A. Castillo, LCB.

July 10, 2009 BIR RULING [DA-(VAT-067) 365-09] DA100-04 Joselito A. Castillo, LCB. Room 506 First United Building 413 Escolta, Manila Sir : This refers to your letter dated October 27, 2008 requesting on behalf of your client, WS Pacific Publications, Inc. with Tax Identification Number (TIN) 004-526-852, for exemption from the payment of value-added tax (VAT) on the importation of educational books, consisting of 4,791 pieces of Flip and Learn Desktop Charts Early Learn and 5,040 pieces of Flip and Learn Desktop Charts Times Table, pursuant to Section 109 (r) of the Tax Code of 1997, as amended by Republic Act (RA) No. 9337, in relation to the UNESCO Florence Agreement. In reply thereto, please be informed that Section 4.109 (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. Corollarily, the importation of the above-mentioned charts covered by bill of lading (BL) No. NYKS3510115850 are exempt from VAT pursuant to the UNESCO Florence Agreement under Annex (A) (i) classified as "Printed Books" and Annex C (v) classified as "Charts". SUCH BEING THE CASE, this Office holds that the importation of 4,791 pieces of Flip and Learn Desktop Charts-Early Learn and 5,040 pieces of Flip and Learn Desktop Charts-Times Table covered by BL No. NYKS3510115850 are indeed EXEMPT from VAT. TIaEDC 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.) GREGORIO V. CABANTAC Deputy Commissioner Legal & Inspection Group