July 14, 2006
VAT RULING NO. 008-06
Sec. 109
Mr. Raymund S. Catabijan
Proprietor
Saint Matthew's Publishing
744 Baltazar St., Cristi Compd.
Guitnang Bayan 1, San Mateo, Rizal
Gentlemen :
This refers to your letter dated February 27, 2006 requesting for a ruling that being a publisher of textbooks you are exempt from the value-added tax and consequently to the final vat withholding on your dealings with the government.
It is represented that you are engaged in business purely as publisher of textbooks and that you do not handle any printing job because you engage the services of subcontractor printing press to do the same. It is your position that as publisher of textbooks, you are exempt from the value-added tax. Hence, your government-clients should not deduct any VAT withholding from their gross payments to you. 07taxcda
In reply, please be informed that Section 109 of the Tax Code in pertinent part provides, viz:
"SEC. 109. Exempt Transactions. — . . .
"(R) Sale, importation, printing or publication of books and any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription...
