VAT Ruling No. 080-91

September 9, 1991 VAT RULING NO. 080-91 National Bookstore, Inc. 701 Rizal Avenue, Manila Attention: Mrs . Hilaria B . Galura Assistant General Manager S i r : This refers to your letter dated March 27, 1991 requesting confirmation on the propriety of payment of 10% VAT on the 9% additional duty imposed under E.O. No. 443 on your importation of children's books which are expressly exempted under Section 103(f) of the Tax Code, as amended. It is represented that your importation of children's books are exempt from 10% VAT under Sec. 103(f) of the Tax Code, as amended; and that upon importation of said articles, the Bureau of Customs imposed the additional duty of 9% ad valorem amounting to P67,413.00 mandated under E.O. No. 443 and a 10% VAT amounting to P6,741.30 based on the said additional duty. In reply, please be informed that as a VAT-registered importer of children's books, you are exempt from the 10% VAT pursuant to Section 103(f) of the Tax Code as amended by Executive Order No. 273. The aforesaid tax exemption provision applies on the total landed cost of your importation which includes the 9% import levy as provided under E.O. No. 443. Since the importation of children's books is an exempt transaction, the imposition of the import levy will not affect the exemption granted on the transaction. LexLib Very truly yours, JOSE U. ONG Commissioner of Internal Revenue By: EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge