BIR Ruling

September 14, 1973 Vegetable Vendors of Baguio Market Association Baguio City Gentlemen : This refers to your letter dated February 12, 1973, to the President of the Philippines requesting that the member of the Association be exempted from the requirements of keeping books of accounts and issuing receipts and sales invoices and that a reasonable fixed tax for purposes of taxation can be adopted. cdt In reply, I have the honor to inform you that public market vendors selling meat, poultry, fish, fruits, vegetables and other food products are required to keep books of accounts because they are, in proper cases, subject to income and additional residence taxes. (BIR Ruling No. 120, s. 1960) However, pursuant to Section 204 of the Tax Code, as amended by Presidential Decree No. 69, the Market Vegetable Vendors of Baguio are exempted from issuing receipts or sale invoices if they sell exclusively vegetable products. Vegetable vendors in public market are subject to the annual graduated fixed tax imposed under Section 182(A)(2) of the Tax Code. The initial fixed is P10.00 and increases gradually depending on the amount of gross sales during the preceding calendar year. Your request that a reasonable fixed tax be imposed on said vendors is placed under study by this office. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."