Title
Amendment on VAT Definition of Raw Sugar
Law
Bir Revenue Regulations No. 13-2013
Decision Date
Sep 20, 2013
BIR Revenue Regulations No. 13-2013 amends the definition of raw sugar for VAT purposes, clarifying that only muscovado sugar qualifies as raw sugar, while sugars produced through centrifugal processes are subject to VAT.
A

Definition of Raw Sugar for VAT Purposes

  • The amendment specifically revises Section 2(b) of Revenue Regulations No. 13-08.
  • Raw sugar is defined as sugar produced solely by a simple process converting sugar cane without requiring any mechanical or similar devices.
  • Muscovado sugar is explicitly identified as the only type of raw sugar under this definition.
  • The centrifugal process, used in producing other types of sugar, is not considered a simple process.
  • Consequently, sugars produced through the centrifugal process are not exempt from Value Added Tax (VAT).

Repealing Clause

  • All other rules and regulations, or parts thereof, that conflict with these amended provisions are repealed, amended, or modified accordingly.

Effectivity

  • These amended regulations become effective fifteen (15) days after their publication in a newspaper of general circulation.

Key Officials

  • The regulations are signed by Cesar V. Purisima, Secretary of Finance.
  • Recommending approval is Kim S. Jacinto-Henares, Commissioner of Internal Revenue.

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