RR No. 13-2002: Amends further RR No. 9-90 which implements the tax subsidy granted to the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES)

Summary

RR No. 13-2002, issued September 13, 2002, amends further RR No. 9-90, which implements the tax subsidy granted to the Armed Forces of the Philippines Commissary and Exchange Service (AFPCES).

Key points

1. Taxes covered by the subsidy. For VAT, the subsidy covers all goods purchased from VAT-registered manufacturers, producers or suppliers, and the net VAT payable of AFPCES from sales of goods. For Excise Tax, it covers alcohol beverages/distilled spirits (compounded liquors, wines, and fermented liquor/beer) and petroleum products.
2. Sole purchasing unit. AFPCES is the only unit of the Armed Forces of the Philippines authorized to buy articles or commodities from local manufacturers, producers or suppliers for sale to persons entitled to commissary privileges. Taxes and duties are paid through an approved subsidy chargeable against Section 13 of the 2002 General Appropriations Act.
3. Purchase orders and registry. Manufacturers, producers and suppliers honor only AFPCES purchase orders approved by an authorized AFPCES official. Sales to AFPCES are entered in a BIR-registered registry book not later than the day after the transaction, open to inspection by authorized internal revenue officers during office hours.
4. Reports. AFPCES submits a quarterly report of sales to its members and purchases to the Commissioner of Internal Revenue, through the Revenue District Office having jurisdiction over its principal office.
5. Subsidy application. AFPCES applies to the Department of Budget and Management (DBM) for entitlement to subsidy for Excise Tax and/or VAT on purchases and subsequent sale of goods. Upon approval, the DBM issues a Special Allotment Release Order in favor of the Bureau of Treasury to cover payment of the taxes to the BIR.

Who is affected

• Armed Forces of the Philippines Commissary and Exchange Service (AFPCES)
• Manufacturers, producers and suppliers selling to AFPCES

Deadlines and effectivity

• AFPCES quarterly report of sales and purchases
• Registry book entry: not later than the day immediately following the transaction

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.