REVENUE REGULATIONS NO. 4-2015 issued on March 13, 2015 amends further Section 2 of Revenue Regulations (RR) No. 13-08, as amended by RR No. 13-2013, relative to the definition of raw sugar and raw cane sugar for Value-Added Tax (VAT) purposes. Section 2 (b) and (c) of RR No 13-08, as amended by RR No. 13-2013, was amended to read as follows: “Section 2. Definition of Terms. – For purposes of these regulations, the following terms will be construed to mean: xxx xxx xxx (b) Raw Sugar – refers to sugar whose content of sucrose by weight in dry state, corresponds to a polarimeter reading of less than 99.5o . Raw Sugar produced each production year shall be classified, for internal revenue purposes, as follows: 1. “A” is raw sugar which is intended for export to the United States Market. 2. “B” is raw sugar which is intended for the Domestic Market. 3. “C” is raw sugar which is reserved for, but have not yet matured for release to the Domestic Market. 4. “D” is raw sugar which is intended for export to the World Market. 5. “E” is reclassified “D” sugar for sale to Food Processors/Exporters operating Customs Bonded Warehouse (CBW) or to an enterprise located within the special processing export zone. xxx xxx xxx (e) Raw Cane Sugar – refers to sugar produced by simple process of conversion of sugar cane without need of any mechanical or similar device such as muscovado. For this purpose, raw cane sugar refers only to muscovado sugar. Thus, only muscovado is exempt for VAT under Section 109(1)(A) of the Tax Code. Centrifugal process of producing sugar is not in itself a simple process. Therefore, any type of sugar produced therefrom are not exempt from VAT such as raw sugar and refined sugar. xxx xxx xxx (f) Sugar as used in these Regulations refers to sugar other than raw cane sugar.” Refined sugar and raw sugar, as defined above, shall be subject to advance payment of VAT by the owner/seller before the sugar is withdrawn from any sugar refinery mill.