VAT Ruling No. 083-92

July 2, 1992 VAT RULING NO. 083-92 NIRC Sec. 103 (f) Precedent Ruling 000-00 Philippine Chamber of Handicraft Industries, Inc. Room T-2, Third Floor Sanvar Plaza, Pasay Road cor. Amorsolo Street Makati, Metro Manila Attention: Hector M. Fernandez, Jr. Director S i r s : This has reference to your letter dated April 2, 1992 stating that you are a non-stock, non-profit organization formed in 1967 aimed at promoting and developing among small and medium-sized handicraft entrepreneurs and traders (1) professional leaning and fellowship and (2) public relations and foreign contacts; that come July this year, your organization will be celebrating its silver anniversary and in connection with said celebration you will be producing a souvenir program/commemorative brochure containing the products being manufactured and exported by your members so that as a group you will be able to sell Philippine made handicrafts to foreign buyers. Since the production of the brochure will entail a great amount of financial burden on your organization, you decided to sell advertising spaces to companies that somehow have something to do with exporting, such as shipping lines, forwarding companies, etc. to help defray the costs of producing the brochure. This is an addition to the contributions you are soliciting from your members. In connection thereto, you now request for a ruling whether or not your members and the advertisers who will contribute to the production of your brochure are liable to pay the value-added tax (VAT). In reply, please be informed that since your production of the souvenir program/commemorative brochure would not be for sale and would be published only to commemorate your silver anniversary, the contributions of your members and advertisers to fund the production thereof, are not subject to the 10% VAT. The taxable magazine or publication are those that appear at regular interval with the price thereof, whether thru subscription and pay-as-you-buy, constituting the tax base in the imposition of the 10% VAT (Sec. 103(f) of the Tax Code). Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue