VAT Ruling No. 081-91

September 9, 1991 VAT RULING NO. 081-91 Alas and Company Certified Public Accountants 2nd Floor, Priscilla Bldg. 2278 Pasong Tamo Ext. Makati, Metro Manila Attention: Ms . Carmelita B . Dinio Tax Service Group S i r s : This has reference to your letter dated January 31, 1991 requesting confirmation of your opinion that your client's sale of printing services to Lifestyle Publication, Inc. is exempt from VAT under Sec. 103(f) of the Tax Code, as amended. It is represented that your client, Ericson Trade Systems Inc., is a corporation organized in the Philippines and was engaged by Lifestyle Publication, a publisher of magazines appearing at regular intervals with fixed prices for subscription and sale, to print the following magazines: cdll a) Lifestyle Asia b) Taipan c) Sports Asia In reply, please be informed that the printing, publication or sale of books and any newspaper, magazine, review, or bulletin which appears as regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of advertisements is exempt from VAT under Sec. 103(f) of the Tax Code, as amended; thus, your clients sale of service is, per se, exempt from VAT. However, if your client optionally registered under Sec. 107(d) of the same Code, it shall become liable to pay the 10% VAT on its printing services rendered to Lifestyle Philippines, Inc. Since VAT is an indirect tax, it can ultimately be passed on to the latter as an additional cost for the printing services. Please be guided accordingly. Very truly yours, JOSE U. ONG Commissioner of Internal Revenue By: EUFRACIO D. SANTOS Deputy Commissioner Officer-In-Charge