Modification of BIR Ruling No. 044-88

August 23, 1988 BIR RULING NO. 401-88 103 (u) 041-88 401-88 Gentlemen : This refers to your letter dated July 20, 1988, in effect requesting opinion as to whether your package containing 143 pieces of religious teaching tapes, which is presently under customs custody, is exempt from internal revenue taxes. It appears that the said articles are used teaching tapes donated to you congregation by various Word Churches in the United States; and that under the provisions of the UNESCO Florence Agreement, the same is classified as "sound recording of an educational character for use exclusively in private educational societies" under ANNEX C (iii) thereof, as certified to by the Secretary-General, UNESCO Commission of the Philippines. In connection therewith, please be informed that pursuant to Section 103(u) of the Tax Code as amended by Executive Order No. 273 and as 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 cassette tapes consigned in the name of the Victory in Jesus Christ Congregation remain 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 aforesaid package containing 143 pieces religious teaching tapes without payment of the 10% value-added tax. (BIR Ruling No. 041-88) cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner