Excise Tax and VAT Imposed on the Importation of Sacramental or Mass Wine

September 29, 1988 BIR RULING NO. 468-88 139 (b) 101 048-84 468-88 Gentlemen : This refers to your letter dated September 6, 1988 stating that the Divine Word Missionaries, Mission Office, Techny, Illinois, 60082 U.S.A., had donated to the Divine Word Missionaries in the Philippines, one hundred (100) plastic drums of sacramental or mass wine containing 20 liters each via S/S "S.D. Gallia" 323 under Bill of Lading No. BC-0501; that the same shall be exclusively used by your priest for celebrating daily mass in the mission stations and communities of your SVD Mission Society here in the Philippines; that the shipment was unsolicited and no dollar remittance was incurred therewith by your society; that said wine containing 14% alcohol cannot be bought in local wine stores nor is it served to guest of prelates; that as per 1st Endorsement dated August 30, 1988 of the Assistant Director-General of the NEDA the same is exempt from customs duties; and that you now request a ruling that said shipment be exempt from specific tax. In reply, please be informed that your aforesaid importation is subject to excise tax pursuant to Section 139(b) of the Tax Code, as amended by Executive Order No. 273. Moreover, the said importation is subject to the 10% value-added tax based on the total value used by the Bureau of Customs in determining tariff and customs duties, plus the amount of excise tax only, since it is exempt from customs duties. (Sec. 101, Tax Code, as amended; see also BIR Ruling No. 048-84 dated Feb. 29, 1984) aisadc Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner