Tax Bloge-Books, Not Exempted from VAT

December 26, 20120
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Due to several features such as portability, ease of use and attractiveness, tablet computers and other digital devices are very successful these days. Most people would prefer e-books rather than buying printed ones. Aside from its convenience, electronic copies of books and other prints are very friendly to the environment. What about its taxability?

Under the Tax Code, sale, importation, printing or publication of books, newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and not devoted principally for paid advertisements, are exempt from value-added tax (VAT). However, the BIR recently issued a circular stating that those in digital or electronic format or computerized versions such as e-books, e-journals, electronic copies, online library sources, CDs and software, are subject to VAT. Hopefully, this will not change your mind with regard to buying electronic copies of your favorite magazines or books to help save mother nature.

Triple i Consulting is the only ISO registered Philippine Accounting Firm specializing in bookkeeping, payroll outsourcing, and tax consultancy.

 

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