Request for Exemption from Payment of Government Tax on Hotel Bills and Sales Tax on Meals

August 21, 1968 BIR RULING NO. 014-68 Miss Putli Amilbangsa Senior Associate Commissioner Commission on National Integration Quezon City M a d a m : This refers to your letter dated June 10, 1968 stating the following: aisadc "In connection with the 1968 Independence Day Parade and Celebration on June 12, 1968, this Commission is required to participate with a float and a brass band and our participants will all be billeted at the Manila Hotel for a few days. "The Management of the Manila Hotel is charging 5% Government Tax on Hotel bills and 3% Sales Tax on meals, food and drinks. Since this Commission is a National Government agency, may I request for a tax exemption certificate as required by the Manila Hotel management so that this Office may be exempted from paying the above-mentioned taxes?" In reply thereto, I have the honor to inform you that this Office cannot issue a certificate of exemption to the Manila Hotel so as to exempt it from the payment of the 3% tax from its receipts derived from the board and lodging of your participants in the Independence Day Celebrations. The Commission on National Integration cannot claim exemption from the 3% tax imposed in Section 191 of the Tax Code for the reason that the same is a tax directly payable by the Manila Hotel. The fact that the tax may ultimately be shifted to or passed upon the hotel guests will not constitute the tax as a tax on the Commission on National Integration which, incidentally foots the bill of your participants. As regards the 5% tax due on hotel bills, you are requested to refer this matter to the City of Manila which has jurisdiction over the same. LLphil Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue