Imposition of Annual Fixed Tax and Subsequent Sales Tax on Buying and Selling of Second-Hand Items
BIR Ruling No. 186-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 17, 1986
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September 17, 1986 BIR RULING NO. 186-86 161 (1) 164 000-00 186-86 M a d a m : This refers to your letter dated July 26, 1986 requesting information as to the taxes you will pay on your contemplated small business of buying and selling hand items like used clothing and shoes. In reply, please be informed that you are subject to the annual fixed tax of P200.00 and to the 1.5% subsequent sales tax based on the gross selling price or gross value in money of the articles sold, pursuant to Section 161(1) and 164 of the Tax Code, as amended. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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