VAT Ruling No. 077-92

June 2, 1992 VAT RULING NO. 077-92 NIRC Sec. 102 (a) Precedent Ruling 000-00 Mr. Geronimo J. Manzano G.J. Manzano Realty 39 Scout Castor Diliman, Quezon City S i r s : This refers to your letter dated June 28, 1991 requesting for a refund in the amount of P67,554.00 representing your payment of value-added tax on commissions you received as a licensed real estate broker. It appears that you are a licensed real estate broker required to pay the privilege tax receipt pursuant to Section 12 of the Local Tax Code in relation to Local Finance Regulations No. 1-83. In reply, please be informed that pursuant to Section 102 of the Tax Code, real estate brokers are subject to the 10% VAT. The provision of Section 103(r) of the same Code to the effect that professionals are exempt from VAT is not applicable because the same refers to professionals, like lawyers, doctors, accountants, etc.; and not to any occupation/calling which neither require any bachelor's degree in school nor any government bar/board examinations for admission to the practice of the profession. Accordingly, your claim for refund is hereby denied for lack of legal basis. Moreover, you are also subject to VAT on your gross receipts not only for commission income for the period February to April, 1989, but also for commission income corresponding to other periods after the implementation of the VAT. Very truly yours, (SGD.) JOSE U. ONG Commissioner of Internal Revenue