10% VAT Imposed on the Sales of Medicine
BIR Ruling No. 240-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 6, 1988
Full text
June 6, 1988 BIR RULING NO. 240-88 100 (a) 000-00 240-88 Gentlemen : This refers to your letter dated February 11, 1988 requesting opinion as to whether or not your sales of medicine in your hospital, a non-stock and non-profit institution, is exempt from the value-added tax. In reply, please be informed in the negative. Even as a non-stock, and non-profit institution, as long as the total amount of your sales of medicine exceed; P200,000.00 during a 12-month period, the same is subject to the 10% value-added tax pursuant to Section 100(a) of the Tax Code, as amended, and as implemented by Section (3) of Revenue Regulations No. 5-87.(BIR Ruling No. 023-88) Otherwise, your sale is subject to the 2% rate of tax imposed under Section 112 of the same Code. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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