Tax Liabilities of Fish Brokers under the VAT Law

June 1, 1988 BIR RULING NO. 224-88 102-a 000-00 224-88 S i r : This refers to your letter dated March 21, 1988, requesting a ruling on the tax liabilities of fish brokers under the value-added tax law. It is represented that fish brokers sell fish and other marine and fresh water products brought or shipped by traders, producers or shippers from different provinces to public markets in Divisoria, Malabon and the Navotas Fish Port Complex on wholesale basis to the highest bidders; that in return they charge 5% commission based on the amount of sales; that the fish and other products sold are basically owned or produced by traders, producers or shippers; and that before the implementation of the VAT law, said fish brokers are classified as commercial brokers paying the 7% broker's tax. In reply, please be informed that since fish brokers are admittedly commercial brokers, they are subject to the value-added tax (VAT). Under Section 102(a) of the Tax Code, as amended by Executive Order 273, the VAT is imposed on any person engaged in the sale of services which means the performance of all kinds of service for others for a fee including those performed or rendered by commercial brokers. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner