BIR Ruling No. 218-82

July 27, 1982 BIR RULING NO. 218-82 205-A 247-81 218-82 The Honorable Minister Ministry of Tourism Tourism Building Agrifina Circle Rizal Park, Manila S i r : This refers to your letter dated May 12, 1982 requesting exemption of the Ministry of Tourism from sales tax on the meals, rooms, etc., accommodation at the Manila Hotel of the participants of the 32nd International Conference of the Federation of International Youth Travel Organization (FIYTO). It is represented that the Ministry of Building is hosting the 32nd International Conference of the Federation of International Youth Travel Organization (FIYTO) to be held at the Manila Hotel on October 22-26, 1982, with an expected 800 participants; that FIYTO is a world-wide, political and non-sectarian organization established in 1951 to promote educational, cultural and social travel among young people; that members are in the main non-profit making bodies, and have a strong connection with their national education authorities; that FIYTO is formally linked with UNESCO (under category C) and places great emphasis on the educational aspect of travel; that FIYTO hopes that the unrestricted travel of the young may help to foster international understanding between young people; and that all five continents in the world are represented in the Federation. In reply, please be informed that this Office finds no legal basis to grant the request for the reason that the 10% hotel room occupancy tax, the 3% tax on food as well as the 7% tax on distilled spirits, fermented liquors and wines imposed by Sections 205-A and 206 of the Tax Code, as amended, are taxes imposed on the proprietors, operators, or keepers of hotels, motels, rest houses, pension houses, lodging houses, resort, restaurant, refreshment parlors and other eating places. In other words, the hotel room occupancy tax, the 3% tax on food as well as the 7% tax on distilled spirits, fermented liquors and wines are directly payable by said establishments. Therefore, the fact that said taxes may ultimately be shifted to or passed upon to the FIYTO participants or to your Office, as the case may be, will not constitute the same as tax payable by said participants or your Office for purposes of the exemption. Moreover, Presidential Decree No. 31 which would have exempted foreign tourist and travellers such as visiting (FIYTO) participants from the payment of the hotel room occupancy tax has been repealed by Batas Pambansa Blg. 2, which took effect on April 1, 1979. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner