BIR mandates revenue stamps for vape products by June 2024

Bureau of Internal Revenue Commissioner Romeo D. Lumagui Jr. announced that internal revenue stamps will become mandatory for all vape products in the Philippines by June 1, 2024.

The announcement aims to ensure the vape industry’s compliance with tax regulations, as outlined in Revenue Memorandum Circular No. 59-2024.

Starting May 8, 2024, manufacturers and importers can order the fourth generation of these revenue stamps, designed to verify the payment of excise taxes on vape products.

Non-compliance will lead to the seizure of products and could expose business owners to criminal liability for tax evasion.

“We have warned the illicit vape industry to pay your proper taxes. Comply with the internal revenue stamps by June 1, you can order as early as May 8. The BIR will monitor the internal revenue stamps for the vape industry. If your products do not have any internal revenue stamps by June 1, we will raid your stores and seize the products. Those in possession of the illicit vape products shall be held liable. Aside from administrative penalties that can be multiplied ten times, you will also be criminally liable for tax evasion,” Lumagui warned.

This regulation is part of a broader crackdown on the illicit vape market, which the BIR has targeted since 2022.

Notable enforcement actions included raids and the filing of criminal cases against illicit vape traders, culminating in the seizure of goods and the issuance of arrest warrants for violators in major cities like Manila and Laguna.