Desistance from Withholding the 10% VAT on the Planters Shares of Molasses

November 15, 1988 BIR RULING NO. 542-88 110 (a) (b) 000-00 542-88 Gentlemen : This refers to your letter dated October 6, 1988 requesting for a ruling as to whether Canlubang Sugar Estate should desist from withholding the 10% value-added tax on the planters shares of molasses before they are withdrawn from the mill. In reply, please be informed that there is no law authorizing private persons to withhold the 10% value-added tax and remit the same to the Bureau of Internal Revenue. Under Section 110(a) and (b) of the Tax Code, as amended by Executive Order No. 273, it is the individual liable therefor who should file his gross quarterly return and pay the 10% value-added tax based on his gross receipts. Accordingly, although planters are liable to the VAT on their share of molasses, you should desist from withholding the 10% value-added tax due thereon. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner