REVENUE MEMORANDUM CIRCULAR NO. 59-2024 issued on April 30, 2024 prescribes the supplemental guidelines on the affixture of Internal Revenue Stamps on Vapor Products pursuant to Revenue Memorandum Circular (RMC) No. 105-2023.

The Stamp Order Consolidator, Importer, and/or Local Manufacturer of Vapor Products shall enroll and register with the Enhanced Internal Revenue Stamps Integrated System (IRSIS) following Section 3 of Revenue Regulations No. 18-2021. For Importers/Local Manufacturers of Vapor Products enrolled with the Electronic Filing and Payment System (eFPS), the excise tax due on the total number of Internal Revenue Stamps and inspection fees shall be made through the eFPS using BIR Form No. 2200-T. Non-EFPS taxpayers shall use other modes of filing and payment. In cases of eFPS downtime or unavailability, BIR Form No. 2200-T shall be manually filed and the Excise Tax and inspection fee payment be made through duly Authorized Agent Banks (AABs) where the Importers/Local Manufacturers of Vapor Products are enrolled. Accordingly, initially filed manual return should eventually be filed in the eFPS on or before the deadline stated in accordance with RMO No. 65-2016. Copies of duly received manually filed BIR Form No. 2200-T and proof of payment shall be submitted to the Chief, Excise LT Field Operations Division (ELTFOD), for encoding of payment in IRSIS. Where the order of Internal Revenue Stamps is placed through the Stamp Order Consolidator, the Stamp Order Consolidator shall submit the Order Report of Internal Revenue Stamps to the Chief, ELTFOD, with BIR Form No. 2200-T and proof of payment for encoding the payment in Enhanced IRSIS.

The following are the seven (7) prescribed container/packaging types of Vapor Products, with the corresponding excise tax rates and tax due.

(Table Here)

Rates shall be increased by 5% every year effective January 1, 2024.

The Ordering, Payment of the Price, and Release of Internal Revenue Stamps, Reporting of Affixture and Removal of Stamps, and Bad Order Internal Revenue Stamps are reflected in the Circular.

The following transitory provisions shall be strictly observed:

1. On May 8, 2024, 4th Generation Internal Revenue Stamps for Vapor Products shall be available for ordering in the Enhanced IRSIS as prescribed in RMC No. 41-2024.
2. Effective June 1, 2024 all imported and locally manufactured Vapor Products in the market shall be affixed with the 4th Generation Internal Revenue Stamps prescribed in RMC No, 41-2024; no removals of locally manufactured Vapor Products from the place of
production shall be allowed unless the 4th Generation Internal Revenue Stamps shall have been affixed thereto; and no importation and subsequent release of Vapor Products from customs custody shall be allowed unless the 4th Generation Internal Revenue Stamps shall have been affixed thereto.

The Stamp Order Consolidator shall be solidarily liable with the Importer/Local Manufacturer of Vapor Products in case of any violation committed by the latter under Section No. 254 (Attempt to Evade or Defeat Tax) and Section No. 265 (Offenses Relating to Stamps) of the National Internal Revenue Code of 1997, as amended. Moreover, any violation shall be subject to the corresponding penalties under the pertinent provisions of RR No. 18-2021 and RR No, 14-2022 and other tax laws and regulations.