Tax Liability of a Publisher of Textbooks

April 13, 1959 BIR RULING NO. 188-59 Collegiate Publishing Co., Ltd. P. O. Box 1629 M a n i l a Gentlemen : In answer to your letter dated January 29, 1959, I have the honor to inform you as follows: As a publisher of textbooks, you are subject to the 3% publisher's tax imposed in section 191 of the National Internal Revenue Code, based on the gross receipts derived by you from the sales of textbooks. On the other hand, the printer to whom you have the textbooks printed is subject to the 3% printer's tax imposed in said section, based on the gross receipts derived by him from his business of printing. The tax equivalent to 3% of the cost of the books which you alleged is being charged to you by the printer is not a sales tax but, in all likelihood, the printer's tax due from the latter and shifted to you. It is, therefore, not correct to say that you have previously paid the 3% tax, because it was actually due from and paid by the printer whose liability thereto is distinct and different from yours. The amount being deducted from money payments due you from your sales of textbooks to the Bureau of Public Schools is also not a sales tax but the 3% publisher's tax. Such deduction is being made by said bureau pursuant to the provisions of Republic Act No. 1051, which requires government bureaus and offices to deduct and withhold, before making any money payment to private individuals, corporations, partnerships and/or associations, taxes due on account of such money payment. prcd Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue