Fee, Remuneration or Consideration Received for Physical Fitness Services to Members is Subject to VAT

September 11, 1991 BIR RULING NO. 185-91 102 000-00 185-91 Gentlemen : In connection with your request dated January 23, 1991 for the refund of P309,896.44 as alleged erroneous payment of percentage taxes, it is informed that the same is denied for the reason that our investigation shows that you received the membership and initiation fees paid by members so that they could use your physical fitness equipment and facilities; and they were also given instructions and briefing on how to use and the benefits of such equipment and facilities. You received "fee, remuneration or consideration" for your physical fitness services to members, so that you are legally under obligation to pay the value-added tax therefor pursuant to section 102 of the Tax Code. BIR Ruling Nos. 314-88 and 071-89 are hereby revoked. This is our final decision on the matter. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner Officer-in-Charge