REVENUE MEMORANDUM CIRCULAR NO. 6-2009 issued on January 28, 2009 circularizes the revocation of other BIR Rulings similar to BIR Ruling No. DA (VAT- 054) 529-2008, namely: BIR Ruling Nos. DA (VAT-019) 121 dated August 8, 2008 issued in favor of Health Maintenance, Inc.; DA (C-032) 122-2008 dated August 8, 2008 issued in favor of Asalus Corporation; and DA (VAT-026) 375-2008 dated October 31, 2008 issued in favor of Maxicare Health Corporation.
     On this regard, BIR Ruling No. 018-98, which provides that HMO s are subject to the Value-Added Tax (VAT) and the basis for computing the VAT shall be the membership fees received from the members undiminished by any amount paid or payable to owners/operators of hospitals, clinics and medical and dental practitioners, is still controlling.
     This is elucidated in Revenue Regulations No. 16-2005, which categorically mentioned that HMO ’s gross receipts shall be the total amount of money or its equivalent representing the service fee actually or constructively received during the taxable period for the services performed or to be performed for another person, excluding the VAT. The compensation for their services representing their service fee, is presumed to be the total amount received as enrollment from their members plus other charges received.
     All other existing rulings inconsistent herewith are likewise considered revoked.