BIR Ruling

October 4, 1973 Atty. Eduardo I. Albano Legal Counsel Philippine Ophthalmic Dispensers Association, Inc. 542 Ronquillo St., Sta. Cruz Manila S i r : In reply to your letter dated September 25, 1973, I have the honor to inform you that an optometrist who, in the exercise of his profession, prescribes or sells eyeglasses or spectacles to his patients after eye examination is not subject to the 7% sales tax prescribed in Section 186 of the Tax Code. Neither is he subject to the said tax on eyeglasses or spectacles grounded or adjusted by means of a machine to fit the individual needs of his patients alone and not for sale to the public in general without eye examination. This is for the reason that the prescribing, grounding or adjusting of said eyeglasses or spectacles are merely incidental to his profession. However, an optometrist who buys eyeglasses, spectacles and other optical items and resells them to the public without eye examination is a dealer subject to the graduated annual fixed tax prescribed in Section 182(A)(2) of the Tax Code. Moreover, an optometrist who prepares and makes eyeglasses or spectacles in compliance with the prescriptions of other optometrist or ophthalmologists for the patients of the latter, is considered a manufacturer. As such manufacturer, he is subject to the P50.00 annual fixed tax prescribed in Section 182(A)(1) of the Tax Code and his sales thereof is subject to the 7% sales tax prescribed in Section 186 of the same Code. 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."