RMO No. 05-2004: Prescribes the guidelines and procedures in the implementation of RR No. 29-2003 relative to the advance payment of Value-Added Tax on the sale of flour

Key points

1. Where the advance VAT is paid. The flour miller pays the advance VAT on flour milled from imported wheat at the Accredited Agent Banks of the Large Taxpayers Service, Large Taxpayers District Office or Revenue District Office where the miller is registered.
2. Imported wheat. The Bureau of Customs does not allow withdrawal of the wheat unless the advance VAT is paid and the flour miller presents the Authority To Release Imported Goods (ATRIG).
3. Local purchases. The wheat trader does not allow withdrawal of wheat bought by the flour miller unless the miller presents the Certificate of Advance Payment on VAT on Flour.
4. Wheat traders. Importation of wheat by any trader is exempt from advance VAT. To monitor all wheat importation regardless of use, every importer, miller or trader, must still secure an ATRIG from the BIR.

Who is affected

• Flour millers
• Wheat traders and importers
• Bureau of Customs