VAT Imposed on the Shipment of Certain Goods Originating from Honolulu, U.S.A

October 14, 1988 BIR RULING NO. 502-88 103 000-00 502-88 M a d a m : This refers to your telegram to the President dated August 10, 1988 which was referred to this Office through the Secretary of Finance, Vicente B. Jayme, requesting that the shipment of certain goods originating from Honolulu, U.S.A., and intended for 100 disabled youths at the Our Lady of Victory Training Center in Davao City be exempt from the value-added tax. In reply, please be informed that your request cannot be granted for lack of legal basis. Section 103 of the Tax Code, as amended by Executive Order 273, which enumerates the transactions exempt from VAT does not include importations of articles consigned to religious organizations or training centers operated by such organization. However, said importation may be exempted from VAT if it consists of agricultural and marine food products in its original state; fertilizers, pesticides, and herbicides; and books, review magazine or bulletin as indicated in Section 103(b), (c), and (f) of the same Code. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner