Exemption of Memorial Park Cemetery from VAT

March 16, 1988 BIR RULING NO. 101-88 99 000-00 101-88 Gentlemen : This refers to your letter dated February 9, 1988 requesting for and in behalf of your client, Manila Memorial Park Cemetery, a ruling as to whether or not its business of selling memorial lots is subject to the value-added tax. In reply, please be informed that pursuant to Section 99 of the Tax Code, as amended, any person who, in the course of trade or business, sells, barters or exchanges goods shall be subject to the value-added tax equivalent to 10% of the gross selling price or gross value in money of the goods sold, bartered or exchanged. In other words, under the law only sale of personal property (goods) is subject to the value-added tax. Accordingly, your client, Manila Memorial Park Cemetery for being engaged in the business of selling memorial lots (real property) is not subject to the value-added tax. cdti Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner