Taxability of Sale of Vino, Fermented Liquors and Cigarettes in an Establishment Inside a Public Market

February 14, 1967 BIR RULING NO. 008-67 Mrs. Rufina C. Taladua Rufing's Riverside Kitchen Public Market, Oroquieta Misamis Occidental M a d a m : This refers to your request for information as to whether, you are subject to the graduated fixed tax or to the percentage tax, in connection with the sale in your establishment of vino, fermented liquors and cigarettes, considering that said establishment is maintained inside the public market of Oroquieta, Misamis Occidental. In reply, I have the honor to inform you that as a Filipina-owner or keeper of the aforementioned establishment, maintained inside the perimeter of the public market, you should have been exempt from the payment of the percentage taxes in accordance with Section 191, last paragraph of the Tax Code. However, because you are engaged in the sales of vino and fermented liquors in the same establishment, the exemption granted by said law is automatically lost. Consequently, you are subject to the percentage tax and not to the graduated fixed tax. Your gross receipts from the sales of vino and fermented liquors therein are subject to 7% tax. However, your sales from food and cigarettes are subject to 3% tax pursuant to Section 191 of the same Code. In this connection, you are required to keep books of accounts or their equivalents; you must issue two sets of sales invoices or receipts serially numbered in duplicate, one for every sale of vino and/or fermented liquors and another for each sale of good, cigarettes or refreshment served. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue