Tax Liability of a Public Relations Agency

March 8, 1988 BIR RULING NO. 083-88 102 (a) 027-88 083-88 Gentlemen : This refers to your letter dated January 25, 1988 requesting a ruling on whether as a public relations agency you are subject to the value-added tax; and the manner of registration of your unused invoices for VAT purposes. In reply thereto, please be informed that pursuant to Section 102(a) of the Tax Code, as amended by Executive Order No. 273, a public relations agency is subject to the value-added tax of 10% on its gross receipts. As regards your unused invoices or receipts, all VAT-registered persons who have in their possession invoices or receipts printed prior to January 1, 1988, are required to submit an inventory of such invoices or receipts on or before January 31, 1988 indicating the number of unused booklets and their corresponding serial number to the Revenue District Officer who has jurisdiction over its principal place of business. However, since January 31, 1988 is a Sunday, the last day for filing said inventory is the next working day, which was on February 1, 1988. As a VAT-registered person, you are required to stamp the unused invoices with your VAT registration number which you will use in connection with your VAT taxable transactions. Thereafter, any subsequent printing of receipts or invoices should include your VAT registration number. cdtech Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner