VAT Ruling No. 044-00

October 23, 2000 VAT RULING NO. 044-00 107 (A) 109 (y) VAT Ruling No. 32-96 Gospel Literature Outreach (Phils.), Inc. P.O. Box 47873, Guiuan Eastern Samar 68809 Attention: Mr . Ray Harwood Gentlemen : This refers to your letter dated November 20, 1997 stating that you are a non-stock, non-profit organization; that you are incorporated for the promotion and encouragement of the study of the Bible; that you are concerned about the needs of your community in Guiuan and in particular, those of a number of schools; that such needs include suitable reading materials for children and various equipment, such as typewriters and lawn-mowers; that various churches and individuals in Australia have donated second-hand books and equipment which are meant to assist in meeting needs such as the ones you have observed in the schools; that they are considering to ship those books to you in a cargo container; that your parent organization is prepared to bear the cost of such a container so as to be able to transport as much materials as possible for distribution in Guiuan; and that you are also prepared to bear all transportation costs incident to the said shipment. Based on the foregoing, you are now asking for advice as to whether the contents, as well as the container thereof, can be exempted from tax/duty and value-added tax. In reply, please be informed that your importation of various equipment such as typewriters and lawn-mowers from various churches and individuals in Australia is subject to the 10% value-added tax imposed by Section 107(A) of the Tax Code of 1997. On the other hand, since Section 109(y) of the same Code exempts from value-added tax the sale and importation of books, your importation of second-handbooks for children is exempt from value-added tax. (VAT Ruling No. 32-96 dated October 30, 1996) This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. AaIDCS Very truly yours, (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal & Inspection Group