Request for Exemption from the Value-Added Tax on the Importation of Religious Video Cassettes Which Received Regularly from Mother Office in Baton Rouge, Louisiana, U.S.A

June 17, 1992 BIR RULING NO. 185-92 103 (u) 401-88 185-92 Jimmy Swaggart Ministries P.O. Box 510 AC, Cubao Quezon City Attention: Dr . Ruben F . Abrenica Director Gentlemen : This refers to your letter dated May 15, 1992 requesting exemption from the value-added tax on the importation of religious video cassettes which you receive regularly from mother office in Baton Rouge, Louisiana, U.S.A. It is represented that you are a non-profit Christian organization; that your objective is to help people come to the saving knowledge of the Lord and Savior, Jesus Christ, in order to live a productive life for God and our country thru the help of said religious materials; that upon the favorable recommendation of the Secretary-General, UNESCO National Commission of the Philippines, you had been granted by the Department of Finance in its Indorsement dated April 5, 1990, exemption from the payment of duties and taxes pursuant to the provisions of Annex C(i) of the UNESCO Florence Agreement and Section 103(u) of the Tax Code, as amended by Executive Order No. 273. In connection therewith, please be informed that pursuant to Section 103(u) of the Tax Code as amended by Executive Order No. 273 and implemented by Section 9(b)(16) of Revenue Regulations No. 5-87 dated September 1, 1987, transactions which are exempt under International agreements to which the Philippines is a signatory, are exempt from the value-added tax. Such being the case, the aforesaid video cassettes consigned in the name of the Jimmy Swaggart Ministries remains exempt from the 10% value-added tax. In other words, the exemption granted to your organization by virtue of the UNESCO Florence Agreement is not revoked by the Value-Added Tax Law. This serves as a certification authorizing you to secure the release from customs custody your video cassettes without payment of the 10% value-added tax (BIR Ruling No. 041-88; 401-88) Very truly yours, JOSE U. ONG Commissioner of Internal Revenue