Creation of Barangay Merville in Paranaque

VAT on transport of naturally grown and planted timber products must be paid in advance by owner/seller.
Payment to be made to BIR through Authorized Agent Banks (AABs), Revenue Collection Officers (RCOs), or deputized local treasurers where AABs are unavailable.
Payable before transport from place of production or concession.

Owners/sellers holding permits or agreements with the Department of Environment and Natural Resources (DENR).
Permits/agreements include Timber License Agreements, Industrial Forest Management Agreements, Tree Farm Lease Agreements, Agro-Forestry Farm Lease Agreements, Private Forest Development Agreements, Socialized Industrial Forest Management Program, Community-Based Forest Management Program, and Timber Cutting/ Salvage & Related Permits.
Naturally grown and planted timber products from industrial tree plantations and private lands covered by land titles or approved applications are also subject.

Computed by applying 12% VAT rate on prescribed value per cubic meter categorized by timber species and geographic region (Luzon, Visayas, Mindanao).
Value schedule provides specific base prices for various species groups (e.g., Philippine Mahogany Group, Yakat Group, Apitong Group, etc.).
Commissioner of Internal Revenue may adjust valuation after consulting DENR Secretary.

BIR or respective Revenue District Office issues a Certificate of Advance Payment of VAT after payment.
Certificate, together with BIR payment form and DENR-issued documents (Certificate of Timber Origin, Certificate of Lumber Origin, or Self Monitoring Form), authorizes transport.
Certificate must be presented during inspections by BIR and DENR authorities.
Separate Revenue Memorandum Order to detail certificate issuance and monitoring requirements.

Transport of timber products from cutting area prohibited without proof of advance VAT payment.
DENR and BIR agents authorized to hold transport/sale in abeyance if proof is absent.
Owners subject only to 3% percentage tax (supported by BIR Form No. 2303) exempt from advance VAT but must pay advance 3% tax.
Products exceeding Php 1.5 million aggregate value subject to advance VAT regardless of exemption certificate.
Assigned internal revenue officers may supervise removal/transport to ensure compliance.

Advance VAT payments credited against output VAT on gross selling price.
Advance 3% percentage tax payments credited to monthly/quarterly percentage tax returns.
Required attachment of Certificate of Advance Payment to VAT or percentage tax returns to support credit claims.

Violations subject to penalties under Sections 254, 275, and other applicable provisions of the National Internal Revenue Code.

Regulations take effect 15 days after publication in a newspaper of general circulation.
Adopted on October 15, 2007, signed by Secretary of Finance and Commissioner of Internal Revenue.