RR No. 4-2015 — Amends further Section 2 of RR No. 13-08, as amended by RR No. 13-2013, relative to the definition of raw sugar and raw cane sugar for Value-Added Tax purposes (Published in Manila Bulletin on March 16, 2015)

DUREAU OF INTERNAL RENENUE RECORDS MGT. DIVISION

REPUBLIC OF THE PHILIPPINES RECEIVED ipehilippines X8x 13 205 YY j?5I pm

DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE

Quezon City

Date March 13,2015

REVENUE REGULATIONS NO. -2

SUBJECT : Amending Further Section 2 of Revenue Regulations No. 13-08, as amended by Revenue Regulations No. 13-2013, Relative to the

Definition of Raw Sugar and Raw Cane Sugar for Value-Added Tax Purposes

TO : All Internal Revenue Officers and Others Concerned

SECTION 1. Scope. - Pursuant to the provisions of Sections 6 and 244, in relation to Sections 106 and 109 (1)(A), both of the National Internal Revenue Code of 1997 (Tax Code) as amended, these reguiations are hereby promulgated to amend provisions of Revenue Regulations (RR) No. 13-08, as amended by RR No. 13-2013.

SECTION 2. Amendment. Section 2 (b) and (c) of RR No.13-08, as amended by RR No. 13-2013, is hereby amended to read as follows:

"sECTION 2. Definition of Terms. - For purposes of these regulations the following terms will be construed to mean:

XXX XXX xXX

b} Raw Sugar --- refers to sugar whose content of sucrose by weight in dry state, corresponds to a polarimeter reading of less than 99.5. Raw

Sugar_produced each production vear shall be classified. for internal revenue purposes, as follows:

1."A" is raw sugar which is intended for export to the United States Market.

2."B" is raw sugar which is intended for the. Domestic Market.

3..."c" is raw sugar which is reserved for, but have not yet matured for

release to the Domestic Market.

4.. "D" is raw sugar which is intended for export to the Worid Market

5. .."E" is reclassified "D" sugar for sale to Food Processors/Exporters

operating Customs Bonded Warehouse (CBW) or to an enterprise Located within the special processing.export zone.

xxx xxx xxx

K

{e Raw Cane Sugar refers to sugar_produced by_simple process of conversion of sugar cane_without need of any mechanical_or similar

device such as muscovado. For this purpose. raw cane sugar refers only to muscovado sugar. Thus only muscovado is exempt from VAT_under Section 109 (1)(A) of the Tax Code.

Centrifugalprocess of producing sugar is not in itself a simple process Therefore. any type of sugar produced therefrom are not exempt from VAT such as raw sugar and refined sugar.

xxx xxx xxx

{f} Sugar as used in these Regulations refers to sugar other than raw cane Sugar.

SEcTION 3. Advance VAT. - For purposes of these Regulations, refined sugar and raw sugar. as defined above, shall be subject to advance payment of VAT by the owner/seller before the sugar is withdrawn from any sugar refinery/mili.

SECTION 4. Repealing Clause. -- Any rules and regulations or parts thereof inconsistent with the provisions of these Regulations are hereby repealed, amended, or modified

accordingly

SECTION 5. Effectivity. --The provisions of these Regulations shall take effect after fifteer (15) days following publication in any newspaper of general circulation.

CESAr V. PURISIMA Secretary of Finance Recommending Approval 025424

KIM S. JA@NTO-HENARES Commissioner of Internal Revenue

031132 RECORDS MGT. DIVISION TAN O INTERNAL N

RECEIVED *Ak } 3 2E 0N 1:36 0m