Exemption of Newsweek, Inc. (Philippine Branch) from the 10% VAT

March 16, 1988 BIR RULING NO. 097-88 103 (f) 000-00 097-88 Gentlemen : This refers to your letter dated January 26, 1988 requesting confirmation of your opinion that your client, Newsweek, Inc. (Philippine Branch) is exempt from the 10% value-added tax (VAT). It is represented that your client is authorized to engage in "soliciting the sale of, selling and circulating the magazine of "Newsweek" and any edition thereof and other magazines, publications and printed matter and advertising in, or in any of the same, collecting therefor and carrying on any and all business and transactions in connection therewith or related thereto; that essentially your client acts as a disseminator of news and information through the publication, printing and selling of Newsweek magazine which is distributed weekly and pegged/sold at a fixed price; and that Newsweek magazine is not devoted principally to advertising. In reply, please be informed that based on the foregoing facts, your client is engaged in the printing and publication of the Newsweek magazine which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of advertisements. Accordingly, it is exempt from the value-added tax pursuant to Section 103(f) of the Tax Code, as amended by Executive Order No. 273. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner