Summary
RMC No. 81-2007 circularizes the unnumbered memorandum on “Table Audit of Health Maintenance Organizations” (HMOs), which sets the VAT taxable base for HMOs.
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Key points
- VAT base. The taxable base of HMOs for VAT is gross receipts without any deduction. This treatment was already clarified and reiterated under RR No. 16-2005, as amended.
- Pre-audit and assessment. Revenue officials pre-audit HMO returns to confirm the correct tax base is used. HMOs found using an incorrect base are immediately issued an Assessment Notice.
Who is affected
- Health maintenance organizations
- Revenue officials who pre-audit their returns
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.