RR No. 19-99: Prescribes the regulations relative to the imposition of VAT beginning January 1, 2000 on the sale of services by persons engaged in the practice of profession or calling and professional services rendered by general professional partnerships; services rendered by actors, actresses, talents, singers and emcees; radio and television broadcasters and choreographers; musical, radio, movie, television and stage directors; and professional athletes

Key points

1. Services covered. VAT applies to sales of services by persons in the practice of profession or calling, and professional services of general professional partnerships. It also covers actors, actresses, talents, singers and emcees, radio and television broadcasters and choreographers, and musical, radio, movie, television and stage directors. Professional athletes are also covered.
2. Partnership as a separate taxable person. A professional partnership is treated as a separate and distinct taxable person from its individual partners.
3. Partners’ services. All gross receipts from services rendered by the partners for and in the name of the partnership are taxable against the partnership. Services a partner sells in a personal and individual capacity are not attributed to the partnership and are taxable against that partner.

Who is affected

• Persons in the practice of profession or calling and general professional partnerships
• Actors, actresses, talents, singers, emcees, broadcasters, choreographers and directors
• Professional athletes

Deadlines and effectivity

• VAT beginning January 1, 2000