Question & AnswerQ&A (REVENUE REGULATIONS NO. 20-2018)
It implements Section 150-B of the NIRC on the excise tax on sweetened beverages pursuant to Section 47 of the TRAIN Law.
Non-alcoholic beverages pre-packaged and sealed according to FDA standards, containing caloric and/or non-caloric sweeteners, including sweetened juice drinks, tea, carbonated beverages, flavored water, energy/sports drinks, powdered drinks not classified as milk, juice, tea, coffee, cereal and grain beverages and other non-alcoholic beverages with added sugar.
P6.00 per liter for beverages using purely caloric/non-caloric sweeteners or a mix, P12.00 per liter when using purely high fructose corn syrup or in combination with other sweeteners, and exempt for those using purely coconut sap sugar and steviol glycosides that comply with standards.
Manufacturers of locally produced sweetened beverages; persons having possession of domestically produced or imported beverages removed without tax; owners or importers of sweetened beverages; and purchasers or transferees of imported tax-free beverages sold or transferred to non-exempt persons/entities.
Milk products, soymilk and flavored soymilk, 100% natural fruit and vegetable juices without added sweeteners, meal replacement and medically indicated beverages, and various coffee products such as ground coffee, instant soluble coffee, and pre-packaged powdered coffee.
A separate return using BIR Form No. 2200-S must be filed for each place of production with the concerned RDO, and excise tax must be paid before removal from production site at authorized agent banks or collection officers.
Penalties under Title X of the NIRC apply. Knowingly false sworn statements can lead to cancellation of permits; corporations may be fined triple the deficiency amount; individuals may face criminal liability; aiders and abettors share the same liability; non-citizens may be deported after serving sentence.
Sweetened beverages intended for export may be removed without prepayment of excise tax subject to obtaining a permit, posting a surety bond, direct shipment abroad, proof of exportation within 30 days, and having export markings on labels.
Labels must conspicuously print the name and address of manufacturer/importer, the assessment number on the container, 'EXPORTED FROM THE PHILIPPINES' for exports, and 'FOR EXPORT TO THE PHILIPPINES; TAX AND DUTY PAID' for imported brands for domestic market, including indication of type of sweetener used.
They must register existing and new brands with sworn statements showing product details and sweetener content; secure a permit to operate; post a surety bond; keep official register books and other required records; submit transcript sheets monthly; and comply with label and excise tax return filing requirements.