Husband and Wife One Taxable Unit

January 15, 1993 BIR RULING NO. 031-93 HUSBAND AND WIFE ONE TAXABLE UNIT 107 000-00 031-93 Director Felixberto Araez Revenue Region No. 8 Tacloban City In reply to your query on whether the VAT registration of the husband would necessarily include the business of the wife engaged in a VAT-taxable activity but who registered merely as non-VAT taxpayer because her gross sales/receipts did not exceed P200,000 in any 12-month period, please be informed that husband and wife comprise one taxable unit because they are presumed to be partners in each other's business. For both spouses only one VAT registration is required pursuant to Section 107 of the Tax Code, as implemented by Section 18 of Revenue Regulations No. 5-87; thus, the gross receipts of the wife may be aggregated with the gross receipts in the business of the husband. This is true only if both spouses are engaged in VAT-registrable business; otherwise, if one is engaged in a truly non-VAT registrable activity, a separate registration shall be made as non-VAT taxpayer. casia JOSE U. ONG Commissioner of Internal Revenue