Keepers of Hotels Who Maintain Restaurants or Bars

August 6, 1959 BIR RULING NO. 395-59 Mr. Alberto T. Arnobit Rm.-29 New Lopez Building Session Road, Baguio City S i r : In reply to your letter dated April 29, 1959, I have the honor to inform you that keepers of hotels who maintain restaurants or bars therein are considered engaged in two separate lines of business. As keepers of hotels they are subject to 3% tax on their gross receipts, except receipts from liquor which are subject to 7% tax. Their hotel receipts consist only of the charges for room accommodation and services rendered in connection therewith. As keepers of bars or restaurants, they pay a 3% tax on sales of food and 7% tax on sales of wines and liquors. The bar or restaurant receipts include sales to both hotel guests and the general public. (Bay View Hotel Inc. v. Collector of Internal Revenue, et al., G.R. No. L-11116, July 1, 1959) As keepers of restaurants, they should issue two sets of invoices or receipts serially numbered in duplicate, one for each sale of food or refreshment and another for each sale of liquor or beer, the originals of which shall be issued to the purchaser or customer, pursuant to section 191 of the Tax Code. The issuance of a single invoice to cover sales of both food and wines and liquors is not authorized by the law. LLphil Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue