An Ordinance Prescribing the Adjustment, Setting, and Adoption of Reasonable Regulatory Fees and Charges of Pasig City and Hereby Amending the 2017 Revised Pasig Revenue Code and the Pasig City 2016 Revised Traffic and Parking Management Code, as Well as Integrating the Provisions of the National Building Code of the Philippines

January 22, 2010 BIR RULING [DA-(VAT-002) 008-10] 109 (R); DA (VAT-013) 092-08 dtd. 7/30/2008 Aklat Eskwela Publishing Inc. #3 Kulambo St., Urduja Village Caloocan City Attention: Salud B. Villa Corporate Secretary Gentlemen : This refers to your undated letter requesting in effect, for exemption from value-added tax (VAT) or 3% percentage tax pursuant to the provisions of Section 109 (R) of the Tax Code of 1997, as amended. It appears that Aklat Eskwela Publishing, Inc. is duly registered with the Securities and Exchange Commission (SEC) under SEC Registration No. CS200904575 dated March 24, 2009 with Taxpayer Identification Number (TIN) 007-269-639; and that the primary purpose for which the corporation was formed are the following, to wit: "To carry on business as proprietors and publishers of newspapers, journals, magazines, books and other literary works and undertakings; and also to carry on business as printers, booksellers, bookbinders, paper makers, stationers, engraver photographers, photographic printers, stereotypers, electro-typers, lithographers, machinist, silkscreeners, or any business of manufacture that may seem expedient." In reply, please be informed that Section 109, par. (R) of the Tax Code of 1997, as amended, sale, importation, printing or publication of books and any newspaper, magazine, review or bulletin, which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of paid advertisements is exempt from the imposition of the VAT. As such, regardless of the amount of the said transaction, you will not be subject to said tax and consequently to the creditable VAT or to the 3% percentage tax under Section 116, in relation to Section 109 (V) of the same Code. aIcSED In view thereof, your business of publishing and selling of books is exempt from the payment of VAT and from the 3% percentage tax. However, as to your other transactions or business as printers, booksellers, bookbinders, paper makers, stationers, engraver photographers, photographic printers, stereotypers, electro-typers, lithographers, machinist, silkscreeners, or any business of manufacture that may seem expedient, which are subject to the VAT, you will also be required to register your business as a VAT business entity and issue a separate VAT invoice/receipt to record such transactions. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered as null and void. Very truly yours, Commissioner of Internal Revenue By: (SGD.) GREGORIO V. CABANTAC Deputy Commissioner Legal and Inspection Group