VAT Ruling No. 059-89
VAT Ruling No. 059-89 • Bureau of Internal Revenue (BIR) Issuances • VAT Rulings • Mar 15, 1989
Full text
March 15, 1989 VAT RULING NO. 059-89 Mr. R. P. Nonato Tax Division SGV & Company Cebu City S i r : This refers to your letter dated October 1, 1988 on behalf of your client, Riasjac Development Corporation, requesting confirmation on the non-taxability under the VAT system of the fees it is receiving from customers for the use of facilities for progressive resistance training, aerobics, taekwando, ballet, tennis, volleyball and basketball. In reply, please be informed that the fees received by your client for providing facilities for training, exercises and other sports activities are collected for the performance of a taxable activity. Such being the case, the income received by your client is subject to 10% VAT pursuant to Sec. 102 (a) of the Tax Code as amended by EO 273. LLpr Please be guided accordingly. Very truly yours, VICTOR A. DEOFERIO, JR. Deputy Commissioner
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