VAT Ruling No. 031-97

April 1, 1997 VAT RULING NO. 031-97 Sec. 103; 000; 031-97 Virtual Media, Inc. Unit 207, Kaimotoville Valle Verde II, Pasig Metro Manila Attention: Mr . Russel B . Tomas President Gentlemen : This refers to your letter dated January 30, 1997 requesting for confirmation of your opinion that your company, Virtual Media, Inc., a domestic publishing, and graphic design company that produces a computer-colored comic book called "A.R.C.H.O.N.", is exempted from the provisions of Republic Act No. 7716, otherwise known as the Expanded Value Added Tax Law with respect to its domestic and foreign sales. In reply thereto, please be informed that Section 103 of the Tax Code, as amended by Republic Act No. 7716 as further amended Republic Act No. 8241 provides: "SEC. 103. Exempt Transactions . The following shall be exempt from the value added tax: xxx xxx xxx (y) 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;" Such being the case, the sale, either to domestic or foreign buyers, of magazines and publications such as the comic books produced by Virtual Media, Inc., are exempt from the value added tax. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue