New Galaxie Lithographic Arts & Printing Press

February 5, 2010 VAT RULING NO. 001-10 Sec. 109 (R); VAT Ruling No. 022-2000 New Galaxie Lithographic Arts & Printing Press 56 Tendido, San Jose, Quezon City Attention: Mrs. Julieta G. Guerrero Gentlemen : This refers to your letter dated March 5, 2008 requesting for an exemption from the value-added tax pursuant to the provisions of Section 109 (R) of the Tax Code of 1997, as amended. ACIESH It is represented that your company New Galaxie Lithographic Arts & Printing Press is engaged in the printing of books; and that you now request that you be exempt from the value added tax. In reply, please be informed that Section 109, par. (R) of the Tax Code of 1997, as amended by Republic Act No. 9337, 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 Value Added Tax. As such, regardless of the amount of the said transaction, you will not be subject to the VAT and consequently from the final withholding VAT or to the 3% percentage tax under Section 116, in relation to Sections 114 (C) and 109 (V) of the same Code. In view thereof, your business of printing of books is exempt from the payment of the Value Added Tax/Final withholding Value Added Tax and from the 3% percentage tax. However, if you have other transactions such as the printing of brochures which are subject to the Value Added Tax, 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. If upon investigation, it will be discovered that the facts are different, then this ruling shall be considered null and void. DISaEA Very truly yours, Commissioner of Internal Revenue By: (SGD.) GREGORIO V. CABANTAC Deputy Commissioner