Exemption of the Shipment of the Tagalog Version of the Film "Jesus" from VAT

February 29, 1988 BIR RULING NO. 064-88 103 041-88 064-88 Gentlemen : This refers to your letter dated February 10, 1988, requesting exemption from the value-added tax on your shipment of the Tagalog version of the film Jesus. Documentary evidences submitted show that the said film, along with the Ilocano and Cebuano versions was donated to you by the Campus Crusade for Christ International, a worldwide student and lay Christian movement; that said documentary films on the life of Jesus were categorized as "Films" in Annex C(1) of the UNESCO Agreement on the importation of educational, scientific and cultural materials as certified by the UNESCO National Commission of the Philippines; that on December 4, 1987, the Jesus film in Tagalog version was borrowed from you by the HongKong Campus Crusade for Christ for evangelical showings to the Filipino community in HongKong; and that the film was returned to you after the scheduled film shows in January, 1988. In reply, please be informed that on the basis of the foregoing facts, your request for exemption is hereby granted. The value-added tax is imposed on the importation of goods whether for use in business or not. In the instant case, the above shipment received by you is not an importation since the same is actually owned by you and was only returned by the HongKong Campus Crusade for Christ who borrowed it from you. Moreover, transactions which are exempt under international agreement to which the Philippines is a signatory are exempt from the value-added tax. (Section 9(b)(16), Revenue Regulations No. 5-87 implementing the VAT law) such being the case, the aforesaid film, even if imported, remains exempt from the value-added tax. In other words, the exemption granted to you by virtue of the UNESCO Agreement is not revoked by the value-added tax (VAT) law. (BIR Ruling No. 041-88) This serves as a certification authorizing you to secure the release from customs custody of your aforesaid shipment of the Tagalog version of the film Jesus without payment of the 10% value-added tax. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner