Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
EXEMPTING BOOKS, NEWSPAPERS, MAGAZINES, JOURNALS, REVIEWS, BULLETINS, 
AND OTHER EDUCATIONAL OR LEARNING MATERIALS MADE OR PUBLISHED IN 
DIGITAL OR ELECTRONIC FORMAT FROM VALUE-ADDED TAX, AMENDING FOR THE 
PURPOSE SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, 
AS AMENDED 
EXPLANATORY NOTE 
This measure is proposed in recognition of the constitutional mandate of the State to protect and 
promote the right of all citizens to quality education at all levels. Consistent with this mandate, 
the State must take appropriate steps to make quality education accessible to all.  
This measure seeks to exempt the sale of books, newspapers, magazines, journals, reviews, 
bulletins, and other educational or learning materials made or published in digital or electronic 
format from value-added tax.  
With the shift to blended learning, more and more educational institutions have adopted the use 
of digital and electronic learning materials in classes. Whilst digital learning materials are handy, 
eco-friendly, and space-saving, these materials unfortunately can be more expensive to download 
than buying printed formats as e-books are not VAT exempt. Presently, printed publications, 
newspapers, magazines, reviews, or bulletins are exempt from VAT under Section 109 of the 
National Internal Revenue Code of 1997—making them more affordable and accessible to the 
public, especially to students and researchers. What this measure proposes is to apply the same 
exemption to learning materials in digital or electronic formats.  
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September 2, 2022
8:00 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
EXEMPTING BOOKS, NEWSPAPERS, MAGAZINES, JOURNALS, REVIEWS, BULLETINS, 
AND OTHER EDUCATIONAL OR LEARNING MATERIALS MADE OR PUBLISHED IN 
DIGITAL OR ELECTRONIC FORMAT FROM VALUE-ADDED TAX, AMENDING FOR THE 
PURPOSE SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, 
AS AMENDED 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
Section 1. A new subparagraph is hereby inserted after subparagraph (AA) of Section 109 (1) of 
the National Internal Revenue Code of 1997, as amended, to read as follows: 
“SEC. 109. Exempt Transactions. – 
1) Subject to the provisions of Subsection (2) hereof, the following transactions shall be
exempt from the value-added tax:
“(A) xxx;
“xxx
“(BB) SALE OF BOOKS, NEWSPAPERS, MAGAZINES, JOURNALS, REVIEWS,
BULLETINS, AND OTHER EDUCATIONAL OR LEARNING MATERIALS MADE OR
PUBLISHED IN DIGITAL OR ELECTRONIC FORMAT; AND
Sec. 2. Subparagraph (BB) of Section 109 (1) of the same Code is amended to read as 
subparagraph (CC). 
Sec. 3. Implementing Rules and Regulations. – The Secretary of Finance, shall, upon the 
recommendation of the Commissioner of Internal Revenue, promulgate not later than thirty (30) 
days upon the effectivity of this Act the necessary rules and regulations for its effective 
implementation.  
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Sec. 4. Repealing Clause. – All laws, acts, presidential decrees, executive orders, issuances, 
presidential proclamations, rules, and regulations or parts thereof which are contrary to and 
inconsistent with any provision of this Act are hereby repealed, amended, or modified accordingly.  
 
Sec. 5. Effectivity. – This Act shall take effect fifteen (15) days after its complete publication 
either in the Official Gazette or in at least two (2) newspapers of general circulation. 
 
Approved,