Taxability of Movie/Cinema House Operators for VAT Purposes

July 2, 2001 REVENUE MEMORANDUM CIRCULAR NO. 28-01 SUBJECT : Taxability of Movie/Cinema House Operators for VAT Purposes TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all internal revenue officers and others concerned, quoted hereunder is the dispositive portion of VAT Ruling No. 031-2000 dated September 8, 2000, regarding the VAT treatment of admission receipts derived by operators of amusement places such as, but not limited to movie/cinema house operators, as follows: "VAT Review Committee Ruling No. 031-2000 dated September 8, 2000 ". . . gross receipts from admission of persons to places of amusement operated in the course of the taxpayer's trade or business such as, but not limited to, cinema houses, became subject to 10% VAT beginning January 1, 1996 , pursuant to the provisions of Section 102, old NIRC (now Sec. 108, NIRC as renumbered), as amended by R.A. 7716, and as implemented by Revenue Regulations No. 7-95. This does not include, however, amusement places subject to amusement tax under Sec. 125 of the NIRC." (Emphasis supplied) All revenue officials, employees and others concerned are hereby enjoined to give this Circular as wide a publicity as possible. CcaASE (SGD.) REN G. BAEZ Commissioner of Internal Revenue