VAT Ruling No. 105-90

May 8, 1990 VAT RULING NO. 105-90 103 (u)-274-89-105-90 New Life 2000 Inc. P.O. Box No. 458 Manila 1099 Attention: Ms . Agnes Grace C . Maza Consignee S i r s : This refers to your letter dated February 26, 1990, requesting tax exemption of your shipment of 31 sets of film projector equipment covered by a non-commercial invoice dated November 9, 1989, and Airway Bill No. 005 23266040. cdt It is represented that your organization is a non-stock, non-profit religious organization which is aimed to promote, foster and encourage the New Life 2000 Manila spirit; a movement dedicated to the cause of the fulfillment of the Great Commission of Jesus Christ and that in pursuant of this objective, you received, as a donation from the United States, 31 sets of film equipment which you will be using to show the film "JESUS" for non-profit, educational and religious purposes. Moreover, it appears that under the provisions of the UNESCO Florence Agreement the said articles are classified as "Scientific Instruments or Apparatus" under Annex D(b). In reply, please be informed that pursuant to Section 103(u) of the Tax Code, as amended, transactions which are exempt under international agreements to which the Philippine is a signatory are exempt from VAT. On this basis, your shipment of film projector equipment from USA is exempt from VAT provided that when the aforesaid articles are subsequently sold, transferred or exchanged in the Philippines to non-exempt persons and entities, the purchasers, transferees or recipients shall be liable for the payment of the VAT [Section 101(b) of the Tax Code, as amended] and that this office shall be notified of such transaction. This serves as a certification authorizing you to secure the release from customs custody of the aforesaid shipment without payment of the 10% VAT. This finds support in VAT Ruling No. 274-89. prcd Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner (Officer-in-Charge)