RR No. 29-2002: Prescribes the updated policies and procedures for the advance payment of Value-Added Tax (VAT) on sale of refined sugar

Key points

1. Who pays and where. The owner or seller pays the VAT in advance to the BIR through Authorized Agent Banks (AABs). Where there are no AABs, payment goes to Revenue Collection Officers (RCOs) or deputized City or Municipal Treasurers.
2. No withdrawal without payment. The proprietor or operator of a sugar mill or refinery cannot allow refined sugar to leave its premises without the advance payment and proof of it. The exception is when the owner or seller shows proof that it is exempt from VAT.
3. Amount of advance payment. The amount is the VAT rate of 10% applied to the applicable base price, set in the Regulations, per 50 kilogram bag of refined sugar. Sellers may credit it against their output tax on the actual gross selling price.
4. Presumptive input tax. Producers who manufacture refined sugar for their own account get a presumptive input tax creditable against output tax, equal to one and one-half percent of the gross value in money of their purchases of primary agricultural products. This is limited to sugarcane and other agricultural products used as main raw materials for sugar.
5. Place of payment. Payment is made before withdrawal to any AAB, RCO or deputized Treasurer of the Revenue District Office having jurisdiction over the sugar mill or refinery. If the owner of the sugar is under the Large Taxpayers Service or a Large Taxpayers District Office, payment is made only to an AAB.

Who is affected

• Owners and sellers of refined sugar
• Proprietors or operators of sugar mills and refineries
• Producers of refined sugar for their own account

Deadlines and effectivity

• Advance payment made before withdrawal of refined sugar from the refinery