BIR Ruling [UN-375-95]

October 12, 1995 BIR RULING [UN-375-95] Church of the Living God Alconville Subd. in front of Cosmos Bottling Co. National Highway, San Pedro L a g u n a Attention: Mr . Danilo P . Bernardo Pastor Gentlemen : This refers to your letter dated October 2, 1995 requesting for an exemption from the value added tax on the importation of 21,600 copies of religious booklets; 70,000 copies of tracts for religious teachings; 6,076 pieces of pre-recorded audio cassette tapes messages; 100 albums of pre-recorded audio cassette tapes messages; 50 pieces of audio cassette players (recorders); 25 pieces of complete sets of 8 x 10 posters and 10 pieces of posters of Jesus Christ 11 x 14 inches which was donated to you by the Voice of God Recordings Inc. of Jeffersonville, Indiana, U.S.A. It is represented that you are a non-stock, non-profit religious corporation whose purpose is to propagate the Gospel of Jesus Christ, that upon favorable recommendation of UNESCO National Commission of the Philippines, you had been granted by the Department of Finance in its first indorsement dated September 29, 1995, exemption from the payment of customs duties pursuant to the provisions of Annexes A(i) and C(iii) of the UNESCO Florence Agreement. In reply, please be informed that pursuant to Section 103(9) of the Tax Code, as amended by Executive Order No. 273 and implemented by Section 9(b)(16) of Revenue Regulations No. 5-87 dated September 1, 1987, transactions which are exempt under special laws or international agreements to which the Philippines is a signatory, are exempt from the value added tax. Accordingly, the importation of 21,600 copies of religious booklets, 70,000 copies of tracts for religious teachings, 6,076 pieces of pre-recorded audio cassette tapes messages, 100 albums of pre-recorded audio cassette tapes messages, 25 pieces complete sets of 8 x 10 posters and 10 pieces of Jesus Christ 11 x 14 inches covered by Invoice No. VGP 0-383 dated August 31, 1995 coming from the U.S.A. are exempt from the value added tax pursuant to the UNESCO Florence Agreement under Annex A(i) classified as "Printed Books" and Annex C (iii) classified as "Sound Recordings". However, the importation of 50 pieces of audio cassette players (recorders) is subject to the value-added tax since it is not classified as "Scientific Instruments or Apparatus." (BIR Ruling No. 101 (u)-000-00-542-93). cdtech Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)