QuestionsQuestions (BIR REVENUE REGULATIONS NO. 7-2004)
It implements Section 109 (BB) and (CC) of the National Internal Revenue Code (as amended by RA 9238) by excluding VAT coverage for medical services rendered by properly PRC-registered and in-good-standing doctors of medicine and legal services rendered by properly IBP-registered and in-good-standing lawyers, and for qualifying general professional partnerships.
Beginning January 1, 2004.
He must be duly licensed as a doctor of medicine by the PRC and of good standing with the PRC.
The excluded medical services are limited to services which, under existing law, may be rendered only by duly licensed doctors of medicine in good standing with the PRC.
He must be duly registered and of good standing with the Integrated Bar of the Philippines (IBP).
The excluded legal services are limited to services which, under existing law, may be rendered only by a lawyer duly registered and in good standing with the IBP.
When the partnership’s partners are composed exclusively of doctors of medicine registered with the PRC, the partnership is organized solely and exclusively for the practice of medical profession, and the medical services are those which, under existing law, may be rendered only by a duly licensed doctor of medicine in good standing with the PRC.
When the partnership’s partners are composed exclusively of lawyers registered with the IBP, the partnership is organized solely and exclusively for the practice of law, and the legal services are those which, under existing law, may be rendered only by a lawyer duly registered and in good standing with the IBP.
Yes. For purposes of these Regulations, a professional partnership is treated as a separate and distinct taxable person from the individual partners.
They entirely become taxable against the partnership.
They are not attributed to the partnership; instead, they are taxable against the partner in his individual capacity.
They must update their registration records with the concerned RDO on or before June 20, 2004 (by filing BIR Form No. 1905 converting status from VAT to NON-VAT or non-percentage tax, depending on which tax treatment fits the services not subject to VAT but to percentage tax).
On or before the date they register as NON-VAT taxpayer (but in no case later than June 30, 2004), they must submit an inventory of unused receipts as of the date of registration, indicating number of booklets and serial numbers.
Unused VAT receipts included in the inventory may be used if the phrase “NON-VAT registered as of ________” is stamped on all copies. Such stamped receipts are allowed for use until July 31, 2004.
Yes. Any revenue issuance inconsistent with RR No. 7-2004 is amended, revoked, modified, or repealed accordingly.
It takes effect immediately unless otherwise provided in RA 9238.