NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
of tij? ‘
*22 JUL25 P1 56
SENATE
S. No. 843
RKcSVEOBV-
Introduced by SENATOR RAMON BONG REVILLA, 3R.
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
The onslaught of the COVID-19 pandemic intensified the use of the internet 
and electronic devices by different sectors of the society, especially those in the 
academe. The educational system in our country adopted new learning modalities 
which led to the utilization of electronic materials such as digital books, e-books and 
other references in digital format. These electronic or digital materials prove to be 
useful to the educators and students alike. Given their accessibility and 
convenience, they will definitely be a mainstay in the educational landscape. 
However, these materials are currently much more expensive than the printed ones 
because they are not exempt from the coverage of the value-added tax (VAT). This 
is because at the time when the National Internal Revenue Code of 1997 was 
enacted into law, these digital and electronic materials were not yet widely used.
Section 109 (1) of the National Internal Revenue Code of 1997 exempts from 
VAT the sale, importation, printing or publication of books and any newspaper, 
magazine, review or bulletin. This measure seeks to include the VAT-exemption to


similar materials made or published in digital or electronic format by amending the 
said law. In effect, said reference materials, whether In soft or hard format, will be 
similarly affordable to educators, learners, researchers and other Interested citizens.
This measure was filed by Senator Ralph G. Recto in the 18* Congress.
In view of the aforementioned, the Immediate passage of this bill Is highly 
recommended.
uioi/bong
RAMO^BONG REVILLA, 3R.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. No. S43
01 tije i'ctai'P
•22 JUL25 PI 56
RSCcIVLD BV.
Introduced by SENATOR RAMON BONG REVILLA, 3R.
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:
1 
Section 1. A new subparagraph is hereby inserted after subparagraphs (AA) of
2 
Section 109 (1) of the National Internal Revenue Code of 1997, as amended, to read
3 
as follows:
4 
"Sec. 109. Exempt Transactions. -
5 
"(1) Subject to the provisions of Subsection (2) hereof,
6 
the following transactions shall be exempt from the value-
7 
added tax:
8 
"(A) X X x;
9 
"x X X
10 
"(BB) 
SALE OF BOOKS, NEWSPAPERS,
11 
MAGAZINES, JOURNALS, REVIEWS, BULLETINS AND
12 
OTHER EDUCATIONAL OR LEARNING 
MATERIALS
13 
made or published in digital or electronic
14 
FORMAT; AND,
15 
"X X X."


1 
Sec. 2. Subparagraph (BB) of Section 109 (1) of the same Code is amended to
2 
read as subparagraph (CC).
3 
Sec. 3. Implementing Rules and Regulations. - the Secretary of Finance, shall,
4 
upon the recommendation of the Commissioner of Internal Revenue, promulgate not
5 
later than thirty (30) days upon the effectivity of this Act the necessary rules and
6 
regulations for its effective implementation.
7 
Sec. 4. Separability Clause. - If any provision or part hereof is held invalid or
8 
unconstitutional, the remainder of the law or the provision or part not otherwise
9 
affected shall remain valid and subsisting.
10 
Sec. 5. Repealing Clause. - All laws, decrees, orders, rules and regulations or
11 
parts thereof inconsistent with this Act are hereby repealed or amended accordingly.
12 
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its
13 
publication in the Official Gazette ov in two (2) newspapers of general circulation.
Approved,