Importation of Braille Kits - Tax-Exempt

February 3, 1993 BIR RULING NO. 057-93 IMPORTATION OF BRAILLE KITS TAX-EXEMPT 103 (u) 000-00 057-93 Mr. Randy N. Weisser Director Resources for the Blind, Inc. Box 1831 C.P.O. 1099 Manila This refers to your letter dated December 11, 1992 requesting exemption from the value-added tax on the importation of braille educational kits donated by Christoffel Blindenmission of Germany to your organization which you are going to give to blind schools nationwide to improve the educational status of blind children. cdta It is represented that Resources for the Blind, Inc. is a non-profit Christian organization that serves with the visually handicapped functioning since February 24, 1988; that your agency is involved in the distributions of Scripture materials for free in the form of braille, cassette or large prints; that at present your shipment of the aforesaid braille educational kits are in the customs awaiting release; and that you have been given exemption from customs duties and so you are now requesting exemption as well as from the 10% value-added tax on this and all future shipment of the same nature. In reply, please be informed that pursuant to Section 42 of R.A. No. 7277, a special law enacted on March 24, 1992 donations from foreign countries shall be exempt from taxes and duties on importation subject to the provisions of Section 105 of the Tariff and Customs Code of the Philippines, as amended, Section 103 of the Tax Code as amended and other relevant laws and international agreement. Such being the case, your importation of braille educational kits donated to you by Christoffel Blindenmission of Germany for the improvement of the educational status of blind children shall be exempt from taxes and duties on importation as well as from the 10% value-added tax imposed by Sec. 101(a) of the Tax Code, because the aforesaid importation is considered as transaction which is exempt under special law falling within the purview of Sec. 103(u) of the same Code, as amended. This serves as a certification authorizing you to secure the release from customs custody of your braille kits without payment of the 10% VAT. cdta JOSE U. ONG Commissioner of Internal Revenue