REVENUE MEMORANDUM CIRCULAR NO. 81-2007 issued on December 4, 2007 circularizes the full text of unnumbered memorandum regarding “Table Audit of Health Maintenance Organizations ” (HMOs).

        The taxable base of HMOs for VAT purposes shall be the gross receipts without any deduction. The said tax treatments have already been clarified and reiterated under Revenue Regulations (RR) No. 16-2005, as amended.

          Concerned revenue officials and employees are directed to pre-audit the returns of HMOs to ensure that they are using the correct tax base/gross receipts for purposes of computing the VAT. Companies who will be found to have used incorrect tax base shall immediately be issued Assessment Notice.