BIR Ruling No. 002-80

August 19, 1980 BIR RULING NO. 002-80 193-b 000-00 02-80 Manila International Book Fair 1980 PHILCITE, Cultural Center Complex Roxas Blvd., Manila Gentlemen: This refers to the letter dated August 11, 1980 of the Joint Organizers of the Book Fair requesting exemption from the payment of the compensating tax on books and all other educational materials brought in by participating international exhibitors of the Fair. Specifically, the request for exemption covers the books and materials sold for the duration of the Fair (August 5 to September 3, 1980) and within the premises of the PHILCITE. In reply, I have the honor to inform you that your request cannot be granted for lack of legal basis. Under Letter of Instruction No. 427 dated July 7, 1976, while articles imported into the Philippines for exhibition at the PHILCITE during any international fair are exempt from taxes, the owners of said articles should re-export the same within 30 days after such fair. "In the event, such products or other articles are sold or otherwise disposed of in the Philippines, the corresponding taxes and duties shall be collected and paid to the national government, . . . ." In other words, even if the article is intended for exhibition but if it is subsequently sold and not re-exported as required by the aforequoted LOI, said article is subject to the 10% advance sales tax based on the landed cost thereof plus 25% mark-up, pursuant to Section 193(b) and 199 of the Tax Code of 1977, as amended. Very truly yours, TOMAS C. TOLEDO Acting Commissioner