Question & AnswerQ&A (BIR REVENUE REGULATIONS NO. 13-2013)
The purpose of BIR Revenue Regulations No. 13-2013 is to amend Section 2(b) of Revenue Regulations No. 13-08, specifically redefining the term 'Raw Sugar' for value-added tax purposes.
The regulations cite Sections 6 and 244, in relation to Sections 106 and 109(1)(A) of the National Internal Revenue Code of 1997, as amended, as the legal basis for their issuance.
Raw Sugar refers to sugar produced by a simple process of conversion of sugar cane without the use of any mechanical or similar devices, specifically referring only to muscovado sugar.
No, sugar produced by the centrifugal process is not considered raw sugar because the centrifugal process is not regarded as a simple process, and such sugar is not exempt from VAT.
Only muscovado sugar is explicitly included within the definition of raw sugar under the regulations.
The provisions take effect fifteen (15) days after their publication in any newspaper of general circulation.
Any rules or regulations or parts thereof that are inconsistent with the provisions of these regulations are repealed, amended, or modified accordingly.
Cesar V. Purisima signed the regulations as Secretary of Finance.
Kim S. Jacinto-Henares recommended the approval in her capacity as Commissioner of Internal Revenue.
A 'simple process' refers to the conversion of sugar cane into sugar without the use of mechanical or similar devices, which excludes processes like the centrifugal method, thereby affecting whether sugar is VAT-exempt.