"...Revenue Memorandum Circular (RMC) 65-2012 clarifies the taxability of Association Dues, Membership fees and other Assessments/Charges collected by condominium orporations.Since
condomiinium corporation furnishes its members and tenants with benefits and priveleges, dues or fees collected from them are subject to Value Added Tax (VAT).Section 105 of the Tax Code states that:
SEC. 105. Persons Liable. - Any person who, in the course of trade or business, sells barters, exchanges, leases goods or properties, renders services, and any person who imports goods shall be subject to the valueadded tax (VAT) imposed in Sections 106 to 108 of this Code.The value-added tax is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services. This rule shall likewise apply to existing contracts of sale or lease of goods, properties or services at the time of the effectivity of Republic Act No. 7716.The phrase 'in the course of trade or business' means the regular conduct or pursuit of a commercial or an economic activity, including transactions incidental thereto, by any person regardless of whether or not the person engaged therein is a nonstock, nonprofit private organization (irrespective of the disposition of its net income and whether or not it sells exclusively to members or their guests), or government entity.In addition,
SEC. 4.108-2. Meaning of Sale or Exchange of Services.The term sale or exchange of services means the performance of all kind of services in the Philippines for 10 others for a fee, remuneration or consideration, whether in kind or in cash, including those performed or rendered by the following: (1) construction and service contractors;(2) stock, real estate, commercial, customs and immigration brokers;
Moreover, based on the above section, a value-added tax is not to imposed on another tax.
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