Whether the Importation of Annual Travel Publications/Magazines is Subject to the Value-Added Tax

February 14, 1995 BIR RULING NO. 034-95 103 (u) 000-00 034-95 Rajah Travel Corporation G/I Plywood Industries Building A. Mabini cor. T.M. Kalaw Sts. Ermita, Manila Attention: Ms . Mercedes C . Cruz Controller Gentlemen : This refers to your request for a ruling as to whether or not your importation of annual travel publications/magazines, (travel brochures) is subject to the Value-Added Tax (VAT) prcd It is represented that your company is engaged in the travel agency business and promotion of tourism; that you import annual travel publications/magazines which are distributed to the public; that these publications/magazines are not for sale, barter, or hire; and that these importations which come from Singapore and Australia, and classified as travel literatures by the UNESCO National Commission of the Philippines, have qualified for tax and duty exemption under the UNESCO-Florence Agreement, as evidenced by the certification dated September 20, 1993 issued by the Secretary General of the UNESCO National Commission of the Philippines. In reply, please be informed that travel publications/magazines fall under the classification of travel literatures described under Annex A(v) of the UNESCO-Florence Agreement, stating "(v) Travel posters and Travel literature (pamphlets, guides, time-tables, leaflets and similar publications), whether illustrated or not including those published by private commercial enterprises whose purpose is to stimulate travel outside the country of importation." Accordingly, your current importation being similar to your previous importation of magazines entitled Insight Gold Book (1,000 copies), Insight Low-Cost Book (10,000 copies) and Blue Book (10,000 copies) covered by proforma Invoice Nos. 13701, 13700 and 13699 dated August 31, 1993 which was previously classified by UNESCO, National Commission of the Philippines as travel literatures is likewise, exempt from VAT pursuant to Section 103(u) of the Tax Code, as amended. This serves as your authority to secure the release from customs custody of the aforesaid importations without payment of the 10% Value-Added Tax (VAT). cdpr Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue