TITLE IV — VALUE-ADDED TAX
resthouses, pension houses, inns, resorts; proprietors or operators of
restaurants, refreshment parlors, cafes and other eating places, including
clubs and caterers; dealers in securities; lending investors; transportation
contractors on their transport of goods or cargoes, including persons who
transport goods or cargoes for hire and other domestic common carriers
by land relative to their transport of goods or cargoes; common carriers
by air and sea relative to their transport of passengers, goods or cargoes
from one place in the Philippines to another place in the Philippines;
sales of electricity by generation companies, transmission by any entity,60
and distribution companies, including electric cooperatives;61 services
of franchise grantees of electric utilities, telephone and telegraph, radio
and television broadcasting and all other franchise grantees except
those under Section 119 of this Code and non-life insurance companies
(except their crop insurances) including surety, fidelity, indemnity and
bonding companies; and similar services regardless of whether or not the
performance thereof calls for the exercise or use of the physical or mental
faculties. The phrase ‘sale or exchange of services’ shall likewise include:
(1) The lease or the use of or the right or privilege to use any copyright,
patent, design or model, plan, secret formula or process, goodwill,
trademark, trade brand or other like property or right;
(2) The lease or the use of, or the right to use of any industrial,
commercial or scientific equipment;
(3) The supply of scientific, technical, industrial or commercial
knowledge or information;
(4) The supply of any assistance that is ancillary and subsidiary to and is
furnished as a means of enabling the application or enjoyment of any
such property, or right as is mentioned in subparagraph (2) or any
such knowledge or information as is mentioned in subparagraph (3);
(5) The supply of services by a nonresident person or his employee in
connection with the use of property or rights belonging to, or the
installation or operation of any brand, machinery or other apparatus
purchased from such nonresident person;
(6) The supply of technical advice, assistance or services rendered in
connection with technical management or administration of any
scientific, industrial or commercial undertaking, venture, project or
scheme;
(7) The lease of motion picture films, films, tapes and discs; and
60
Introduced by Section 33 of the TRAIN Law.
61
Ibid.
National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)
121
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