Imported Video Cassette Tapes Being Subject to Specific Tax is No Longer Subject to Advance Sales Tax

June 24, 1987 BIR RULING NO. 176-87 134 000-00 176-87 Gentlemen : This refers to your letter dated April 22, 1987 stating that you have made arrangements to import from the United States processed video cassette tapes. You are requesting that the said importation be exempt from advance sales tax. In reply, please be informed that imported processed video cassette tapes are subject to the specific tax of P5.00 imposed under Section 134 of the Tax Code. An annual specific tax on the said video tape is due on the 1st day of January and every year thereafter. (Sec. 3, Revenue Regulations No. 14-85 dated December 27, 1985). Said specific tax is one of the excise taxes included in Title IV of the Tax Code. The original sale by an importer of articles subject to excise tax imposed under Title IV is exempt from the sales tax imposed in Section 163 of the Tax Code. [Sec. 167(a), Tax Code] Such being the case, the video tapes in question being subject to the specific tax is no longer subject to the advance sales tax imposed under Section 162(c) in relation to Section 163, both of the Tax Code. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner