Tax Exemption of the Shipment of a Religious Film

October 3, 1989 BIR RULING NO. 211-89 103 (u) 041-88 064-88 211-89 Gentlemen : This refers to your letter dated September 18, 1989, requesting tax exemption of your shipment of 3 x 16 mm. 13242 ft. and 6 x 16 mm. 26484 ft. religious film covered by Air Waybill No. 160-5847-8792 (Cathay Pacific) coming from the United Kingdom. It appears that the said films are English and Tagalog version prints of the life of Jesus Christ; and that under the provisions of the UNESCO Florence Agreement the same is classified as "films" under Annex C(1) thereof, on importation of educational scientific and cultural materials. (BIR Ruling No. 064-88, Feb. 29, 1989). In connection therewith, please be informed that pursuant to Section 103(w) of the Tax Code as amended by Executive Order No. 273 and implemented by Section 9(b)(16) of Revenue Regulations No. 5-87, transactions which are exempt under international agreements to which the Philippines is a signatory, are exempt from the value-added tax (VAT). Such being the case, the aforesaid imported films consigned to you are exempt from VAT. In other words, the exemption granted to your organization by virtue of the UNESCO Florence Agreement is not revoked by the Value-Added Tax (VAT) Law. [BIR Ruling No. 041-88, Feb. 11, 1989; BIR Ruling Ibid ]. This serves as a certification authorizing you to secure the release from customs custody your aforesaid shipment of the English and Tagalog version print of the life of Jesus Christ without payment of the 10% VAT. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner