REVENUE MEMORANDUM CIRCULAR NO. 35-2012 issued on August 6, 2012 clarifies the taxability of clubs organized and operated exclusively for pleasure, recreation, and other non-profit purposes.
     The income of recreational clubs from whatever source, including but not limited to membership fees, assessment dues, rental income and service fees are subject to Income Tax.
       Any  person  regardless of whether or not the person  engaged therein is a non-stock, nonprofit private organization or government entity” is liable to pay Value-Added Tax (VAT) on the sale of goods or services. The gross receipts of recreational clubs including but not limited to
membership fees, assessment dues, rental income, and service fees are subject to VAT.