BIR Ruling

May 16, 1968 Mr. Alejandro Maramag Action Line c/o The Manila Time P. O Box 775 Manila S i r : This refers to the letter dated April 22, 1968 of one of your readers, Mr. Feliciano G. Mandap of Rm. 318 R.R. Santos Bldg., Plaza Goiti, Manila requesting information as to whether or not there is already a law or a bill adding a 10% tax paid by a customer whenever he eats in a restaurant, stay in a hotel, dine in a night club, cocktail lounge, bar, train dining room and any other business of similar nature. In reply, I have the honor to quote hereunder the provision of the last paragraph of Section 191 of the Tax Code, viz: "Keepers of restaurants, refreshment parlors and other eating places, except those inside public market places, and caterers, shall pay a tax of three per centum of their gross receipts. Keepers of bars and cafes where wines or liquors are served shall pay a tax of seven per centum of their gross receipts: Provided, however, That two sets of sales or commercial invoices or receipts serially numbered in duplicate shall be separately prepared and issued, one for each sale of food or refreshment served and another for each sale of wine or liquors served, the originals of which shall be issued to the purchaser or customer. Where such establishments are maintained within the premises or compound of a race track or jai-alai or are accessible to patrons of such race track or jai-alai by means of a connecting door or passage, the keepers of such establishments shall pay a tax of twenty per centum of their gross receipts. Where the establishment is maintained within the premises of a cabaret or night club, or is accessible to patrons thereof by means of a connecting door or passage, the keeper of the establishment shall pay a tax of ten per centum of the gross receipts." Keepers of hotels and lodging houses are also subject to the 3% tax prescribed in Section 191 of the Tax Code. As requested, the original letter is herewith returned. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue