VAT Ruling No. 041-93

November 10, 1993 VAT RULING NO. 041-93 Section 103 (f)-000-00 041-93 Department of Finance Manila Attention: Mrs . Crisanta S . Legaspi Director, Privatization Office and Executive Officer Committee on Privatization Gentlemen : This refers to your letter dated August 24, 1993, in effect, requesting for a ruling that the printer contracted by the Asset Privatization Committee to print the brochure entitled "Privatization Opportunities in the Philippines" containing a descriptive information of the various government assets authorized for privatization, is exempt from VAT. It is contended that the cost of printing in the amount of P21,285.70 will be provided by USAID Grant. In reply, please be informed that, pursuant to Section 103(f) of the Tax Code exempting from the value-added tax the "printing, publication, importation or sale of books", one-time printing of an informative brochure on various government assets authorized for privatization which is reasonably equated with the one-time printing of books, shall likewise be entitled to exemption from value-added. This opinion is all the more justified because of the fact that the funding is sourced from USAID Grant which carries a condition that the grant shall be "free from any taxation or fees imposed under laws in effect in the territory of the grantees." cdta Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue