Adriana Printing Company, Inc.

July 15, 2008 VAT RULING NO. 005-08 Sec. 114 (C) VAT Ruling 078-2002 & 010-2006 Adriana Printing Company, Inc. 776 Aurora Boulevard Quezon City Attention: Mr. Rene L. Martinez President Gentlemen : Reference is made to your letter dated May 30, 2006 requesting for a clarificatory ruling to the effect that your printing, publication and sale of textbooks is exempt from the value-added tax (VAT). SIacTE It is represented that Adriana Printing Co., Inc. (APCI) is engaged in the publishing and printing of textbooks; that APCI is a VAT registered taxpayer; that in the course of your recent 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 (Y) 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 printing, publication and sale 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. Very truly yours, (SGD.) GREGORIO V. CABANTAC Deputy Commissioner