Imported fuel

(1st of 2 parts)

THE Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 2-2012 establishing the tax administration treatment of petroleum and petroleum products imported into the Philippines, including those coming in through Free port Zones and Economic Zones and registration of all storage tanks, facilities, depots and terminals.

The value added and excise taxes that are due on all petroleum and petroleum products that are imported and/or brought directly from abroad to the Philippines, including Freeport and Economic zones, shall be paid by the importer thereof to the Bureau of Customs (BOC).

The subsequent exportation or sale/delivery of these petroleum or petroleum products to registered enterprises enjoying tax privileges within the Freeport and Economic zones, as well as the sale of said goods to persons engaged in international shipping or international air transport operations, shall be subject to 0 percent VAT.

With respect to the VAT paid on petroleum or petroleum products by the importer on account of aforesaid 0 percent VAT transactions/entities and the excise taxes paid on account of sales to international carriers of Philippine or Foreign Registry for use or consumption outside the Philippines or exempt entities or agencies covered by tax treaties, conventions and international agreements for their use or consumption (covered by Certification in such entity’s favor), as well as entities which are by law exempt from indirect taxes, the importer may file a claim for credit or refund with the BOC, which shall process the claim for refund, subject to the favorable endorsement of the BIR, in accordance with existing rules and procedures:

Provided, that no claim for refund shall be granted unless it is properly shown to the satisfaction of the BIR that said petroleum or petroleum products have been sold to a duly registered locator and have been utilized in the registered activity/operation of the locator, or that such have been sold and have been used for international shipping or air transport operations, or that the entities to which the said goods were sold are statutorily zero-rated for VAT and/or exempt from Excise taxes.

(To be continued)

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