Let's Get on the TRAIN
BUREAU OF INTERNAL REVENUE
The Bureau of Internal Revenue (BIR) has issued Revenue Regulation (RR) No. 20–2018 dated 25 July 2018 prescribing the Implementing Rules and Guidelines on the Imposition of Excise Tax on Sweetened Beverages Pursuant to Section 47 of Republic Act No. 10963, otherwise known as the “Tax Reform for Acceleration and Inclusion (TRAIN) Law. Salient features of the RR provides:
• Persons Liable – Persons liable will be all local manufacturers and owners or importers of sweetened beverages (SBs). These will include also, persons having possession of domestically manufactured and imported SBs which were removed from the place of production or from customs custody, as the case may be, without payment of the excise tax.
• Tax Rates and Bases - Effective 01 January 2018, there shall be levied, assessed, and collected, a specific tax on SBs, in accordance with the following:
|Product Description||Tax Rate (per liter of volume capacity)|
|Using purely caloric sweeteners, and purely non-caloric sweeteners, or a mix of caloric and non-caloric sweeteners||P6.00|
|Using purely high fructose corn syrup of in combination with any caloric or non-caloric sweetener||P12.00|
|Using purely coconut sap sugar and purely steviol glycosides||Exempt|
• On or before 31 August 2018, all manufacturers and importers of SBs must comply with the following:
- Certificate of Registration of manufacturer/importer of SBs must be updated to add the excise tax type “XB”.
- Secure a Permit to Operate as Manufacturer/Toller/Importer of SBs (whether large or non-large taxpayer) at the Excise LT Regulatory Division (ELTRD), BIR National Office.
- Submit to the ELTRD the following documents: (1) Notarized summary list of existing and new brands of locally manufactured and imported brands of SBs for purposes of registration of said brands; (2) Sworn Statement on all existing and new locally manufactured brands; and (3) Notarized Sworn Declarations and Inventory List as of 31 December 2017.
• All manufacturers of SBs shall use the BIR Form No. 2200-S in filing and paying the excise tax due upon removal of excisable products from the place of production. All importers, whether importing raw materials or finished goods, shall secure an Authority to Release Imported Goods (ATRIG) at the ELTRD before the release of shipment from customs custody. All manufacturers of SBs transferring or removing raw materials from place of production shall secure an Excise Taxpayer’s Removal Declaration (ETRD). ETRD, Summary List of Removals and Liquidation Statement of Advance Deposits are required to be submitted as supporting attachments to the BIR Form 2200-S on a weekly basis.
• Semi-processed foods sold to fast food chains shall be considered as finished goods subject to excise tax. SBs that are produced or manufactured and are subsequently consumed within the place of production shall be subject to excise tax.
• Subject to certain terms and conditions, SB products intended for exports may be removed from the place of production without the prepayment of excise tax. In case of failure to comply, the removal of the product shall be subject to excise tax.
• The Food and Drug Authority (FDA) shall require all manufacturers/importers of SBs to indicate on the label the type of sweetener used and on SBs in powder form to indicate on the label the number of liters per pack size starting 01 June 2018. Printing of the name and address of the manufacturer/importer is mandated to comply on or before 31 August 2018.
Attached is a copy for your reference.
DISCLAIMER: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although R.G. Manabat & Co. endeavors to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
For any queries, you may contact any member of the InTAX Editorial Board or send your questions to firstname.lastname@example.org.