VAT Imposed on Gross Rental Payment for the Lease of Real Property
BIR Ruling No. 476-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 4, 1988
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October 4, 1988 BIR RULING NO. 476-88 102 (a) 000-00 476-88 Gentlemen : This refers to your letter dated August 1, 1988, in behalf of your client, Richard Warwick Hairdresser, Inc., stating that the same is a domestic corporation which operates as a beauty parlor; that its main source of income is from services on hair cutting and other related beauty services; that before the effectivity of the Value-Added Tax Law, your client pays 4% tax on all its revenues derived from services rendered; and that you now request a ruling as to whether upon the effectivity of the aforesaid law, all receipts of your client derived from beauty services is subject to the value-added tax pursuant to Section 102(a) of the Tax Code, as amended by Executive Order No. 273. In reply, please be informed that gross rental payment for the lease of real property amounting to at least P500.00 is subject to the value-added tax pursuant to Section 102(a) of the Tax Code, as amended by Executive Order No. 273. Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner
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