Lorimar Publishing Co., Inc.

February 9, 2010 VAT RULING NO. 002-10 Section 109; VAT Ruling No. 005-08 Lorimar Publishing Co., Inc. 776 Aurora Blvd., cor. Boston St., Cubao, Quezon City Attention: Mr. Ronnie LI. Martinez President Gentlemen : This refers to your letter dated January 22, 2007 requesting for ruling whether or not that your publication of textbooks is exempt from the value-added tax (VAT). HCacTI It is represented that Lorimar Publishing Co., Inc. (LPCI for brevity) is engaged in the publishing of textbooks; that LPCI is a VAT registered taxpayer. A certificate of registration in the Philippine Government Electronic Procurement System was issued by Department of Budget and Management, Procurement Service. A Certificate of Registration No. 0905 was issued by National Book Development Board valid from January 18, 2007 until April 30, 2010. In the course of your transactions with the Department of Education (DepEd) and/or local government units, you were required to provide them with a ruling from the BIR granting you exemption from the payment of the VAT, hence, this request. In reply, we would like to reiterate our opinion under VAT Ruling No. 78-2002 dated November 20, 2002 and VAT Ruling No. 10-2006 dated Sept. 20, 2006, that the sale, printing and publishing of books are exempt from VAT under Section 109 (R) of the Tax Code of 1997, as last amended by R.A. 9337. In view thereof, it is the opinion of this office that your publication of textbooks is exempt from VAT. You shall also be exempt from the Final Withholding VAT of 5% on your sale of the said books to your government clients pursuant to Section 114 (C) of the said Tax Code. This ruling is being issued on the basis of the foregoing facts as represented. If upon investigation, it is discovered that the facts are different, then this ruling shall be considered null and void. cHSIAC Very truly yours, (SGD.) GREGORIO V. CABANTAC Deputy Commissioner