Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. __ 
_ 
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lntrod uced by HONORABLE ERNESTO "ERNIX" M. DIONISIO, JR. 
,... ........... ,.. .. "" .... __________________ .. _____________________ ,._, _______ _ 
AN ACT 
EXEMPTING EDUCATIONAL APPLICATIONS, GADGETS, COMPUTERS, AND 
E-BOOKS FROM VALUE-ADDED TAX (VAT) FOR THE PRINCIPAL USE OF 
TEACHERS AND STUDENTS IN ONLINE AND DISTANT LEARNING, AMENDING 
FOR THE PURPOSE SECTION 109 (1) OF THE NATIONAL INTERNAL REVENUE 
CODE OF 1997, AS AMENDED 
EXPLANATORY NOTE 
Blended or hybrid learning is now being embraced all over the globe as the COVID-19 
pandemic continues to ravage the world. As the well-being of the youth remains to be a 
primordial consideration on whether or not physical classes should return, students should 
have accessible technology available for consumption should there be another pandemic, or 
emergency, that strike our nation. 
Concomitant to this, not all families are able to afford gadgets, computers, applications, 
and e-books that are up-to-standard to the minimum requirements for blended or hybrid 
learning. As such, this bill seeks to lessen the burden of those lacking in life, by amendment 
of the Tax Code, which will provide VAT exemption to the aforementioned which will be 
primarily used for education. 
In effect, the price for the purchase of emerging technology will be more accessible to 
those who seek to better their knowledge virtually. The knowledge our precious teachers have 
combined with cost-effective technology, will prepare the next generation for any situation that 
may come their way. 
ESTO "ERNIX" M. DIONISI , JR. 
Assistant Majority Floor Leader 
Congressman 
First Congressional District of Manila 
September 27, 2022
11:25 am
5189


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. __ _ 
----------------------------------
Introduced by HONORABLE ERNESTO "ERNIX" M. DIONISIO, JR . 
.......... ""·-··-----------,---------·---
AN ACT 
EXEMPTING EDUCATIONAL APPLICATIONS, GADGETS, COMPUTERS, AND 
E-BOOKS FROM VALUE-ADDED TAX (VAT) FOR THE PRINCIPAL USE OF 
TEACHERS AND STUDENTS IN ONLINE AND DISTANT LEARNING, 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. Section 109 (1) of the National Internal Revenue Code of 1997, 
as amended, is hereby further amended to read as follows: 
SEC. 109. Exempt Transactions. -
(1) Subject to the provisions of 
Subsection (2) hereof, the foUowing transactions shall be exempt from the 
Value-Added Tax: 
XXX 
"(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 and sale and which is not devoted principally to the 
publication of paid advertisements: 
"(S) SALE OF E-BOOKS, E-LEARNING APPLICATIONS, GADGETS 
AND COMPUTERS FOR THE PRINCIPAL USE OF TEACHERS AND 
STUDENTS IN ONLINE AND DISTANT LEARNING; 
"(T[S]) xxx; 
"(U[T]) xxx; 
"xxx"; and 
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"(CC[BB])". 
SECTION 2. Implementing Rules and Regulations. -
The Secretary of THE 
Department of Finance, upon the recommendation of the Commissioner of Internal 
Revenue, shall promulgate not later than thirty (30) days upon the effectivity of this Act 
the necessary rules and regulations for its effective implementation, in consultation 
with the Department of Education, Commission on Higher Education and other 
necessary stakeholders. 
SECTION 3. Repealing Clause. - All laws, decrees, letters of instruction, 
resolutions, orders or parts thereof which are inconsistent with the provisions of this 
Act are hereby repealed, modified or amended accordingly. 
SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in two (2) newspapers of general 
circulation.