RMC No. 75-2012 — Clarifies Section 109(1)(R) of the National Internal Revenue Code of 1997, as amended, on the VAT exemption of the sale, importation, printing or publication of books, newspapers, magazines, reviews or bulletins

REPUBLIC gE THE PHILIPPINES DEPARtMENT OF FINANCE RECORDS MGT DIVISION BUREAU OF INTENNAL WTNUE V 2 3 202 G:l*A: M:

BUREAU OF INTERNAL REVENUE RECEIVEN

Novenber 22. 2012

REVENUE MEMORANDUM CIRCULAR NO. 75- 20/2

SUBJECT : Ctarifying Section 109(1)(R) of the National Internal Revenue Code of 1997.

as amended, on the VAT Exemption of the Sale, Importation, Printing or Publication of Books, Newspapers, Magazines, Reviews or Bulletins

TO All Internal Revenue Officers, Employees and Others Concerned

Section 109(1)(R) of the National Internal Revenue Code (NIRC) of 1997, as amended. provides:

"SECTION l09. Exempt Transactions.- (1) Subject to the provisions of Subsection (2) hereof, the following transactions shall be exempt from the value- added tax:

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(R) Saie, importation, printing or publication of books and any newspaper. magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the pubiication of paid advertisements;"

In retation thereto, the following clarifications are made to be exempted from VAT:

l. A newspaper, magazine, review or butletin must be: (l) printed or published at

regular intervals; (2) avaitabie for subscription and sale at fixed prices; and (3) are not principally devoted to the publication of paid advertisements.

2. The terms "book, "newspaper", "magazine," "review" and "bulletin" as used in the

provision refer to printed materials in hard copies. They do not include those in digital or electronic format or computerized versions, including but not limited to: e- books, e-journals, electronic copies, online iibrary sources, CDs and software

All other issuance inconsistent herewith are hereby repealed or modified accordingly

publicity as possible. All revenue officers and employees are hereby enjoined to give this Circular as wide a

This Circular takes effect immediately

KIM S. JAEIKTO-HENARES Commissidnerof Internal Reven 012801

A BUREAU OF INTGRNAL RWNU RECORDS MGT DIVISICN NV 2 3 2012 GIT** A. M.

RECEIVE