Saturday, May 16, 2015

Imposition of Advance Business Tax (Value-Added Tax [VAT] or Percentage Tax) on Raw Sugar and Refined Sugar

Last month, there was an increase of retail prices of sugar in the market due to the the issuance of Revenue Regulations (RR) No. 6-2015 dated March 31, 2015 and other related factors.

After the issuance of the regulations, Revenue Memorandum Circular (RMC) No. 25-2015 was recently issued by the Bureau of Internal Revenue (BIR) to clarify, through questions and answer, certain issues.

One of the questions was:

1. What is the advance business tax (VAT) or percentage tax) treatment on the physical inventories of raw sugar and refined sugar held in possession by the miller/sugar refinery at the time of effectivity of RR No. 6-2015 on May 1, 2015?

Answer.: The physical inventories of raw sugar and refined sugar covered by Quedans dated before May 1, 2015 are not subject to the imposition of the advance business tax (VAT or percentage tax).

Please refer of the other questions and answers and the full text of RMC No. 25-2015.

1 comment:

  1. Hi. I have a question not exactly about the topic post.

    I have closed my sole proprietorship business around 2 years ago with the BIR and have done the following as per their order:

    1. Submitted the documents (COR, Inventory of Unused Receipts, etc., tax returns/forms)
    2. Received a routing form and collected the signatures of the BIR officers.
    3. The BIR said that they would call us back after all that but they never did.

    Am I still expected to continuously file no operation tax returns? After 2 years should I expect a hefty penalty for not filing the no operation taxes?