Request for Full Exemption from Payment of Value-Added Tax and Other Duties on the Importation of 100 Tons of Newsprint

November 17, 1995 BIR RULING NO. 180-95 103 (f) 000-00 180-95 Carlo Publishing House Leyland Bldg., Chicago cor. 21st St. Port Area Metro Manila Attention: Mr . Prospero A . Pichay Jr . President & Gen. Manager Gentlemen : This refers to your letter dated June 7, 1995 stating that Carlo Publishing House, (CP) is engaged in publication business; that it publishes four (4) dailies/tabloids circulated throughout the Philippines; that as such, it is a VAT exempt entity; and that it has decided to import 100 tons, newsprint from Shanghai, China to be used in its publication business. LLpr Based on the foregoing, you are now requesting for full exemption from the payment of value-added tax and other duties on the importation of said 100 tons of newsprint. In reply, I regret to inform you that your request cannot be granted for lack of legal basis. The exemption from the value-added tax under Section 103(f) of the Tax Code, as amended is limited only to the printing, publication, importation or sale of books and any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of advertisements. There is, however, no mention about the importation of raw materials like newsprint to be used in publishing the same. Hence, such importation of raw materials (i.e. newsprint) is subject to the value-added tax. cdti Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue