REVENUE MEMORANDUM CIRCULAR NO. 129-2024 issued on November 25, 2024, circularizes Republic Act No. 10659, titled “An Act Promoting and Supporting the Competitiveness of the Sugarcane Industry and for Other Purposes”.

Pursuant to Section 106(A)(2)(a)(1) of the National Internal Revenue Code (NIRC), VAT zerorated shall be imposed on refined sugar withdrawn from warehouses for actual physical export to the world market.

To differentiate refined sugar from raw sugar for VAT purposes, refined sugar refers to sugar whose content of sucrose, by weight, in the dry state corresponds to a polarimeter reading of 99.5° and above, and raw sugar means sugar whose content of sucrose by weight, in the dry state, corresponds to a polarimeter reading of less than 99.5°.

The BIR, in consultation with the Sugar Regulatory Association and industry stakeholders, shall issue the necessary regulation to implement the said provision.