THE PHILIPPINE tax agency announced Wednesday, September 9, that qualified export-oriented businesses may claim value-added tax (VAT) refunds on eligible purchases while waiting for official zero-rating certifications during a recent transition period.
Under Revenue Memorandum Circular No. 96-2026 issued by the Bureau of Internal Revenue (BIR), exporters who incurred local VAT expenses prior to receiving certification can apply for reimbursement, provided their paperwork was processed within the designated timeframe.
“Export-oriented enterprises received their VAT zero-rating certifications on different dates during the transition period,” BIR Commissioner Charlito Martin Mendoza said in a statement.
Mendoza added: “We are clarifying how VAT incurred while these certifications were being processed should be treated so qualified export-oriented enterprises will have a clear basis for their refund claims.”
The new guidance covers VAT incurred on local purchases and importations linked to zero-rated sales starting November 28, 2024, before the Department of Trade and Industry’s Export Marketing Bureau issued the zero-rating certificates, up to the transition deadline of December 31, 2025.
Refunds remain subject to strict verification under national tax law, requiring businesses to prove expenses directly relate to zero-rated exports and have not been previously credited, reimbursed, or offset, the BIR said.
Enterprises that met export targets but failed to secure the necessary certification remain ineligible for refunds for the following year, though they may carry forward unused input VAT to offset future tax liabilities.
Tax authorities said the measure forms part of President Ferdinand Marcos Jr.’s policy drive to improve ease of doing business and streamline tax compliance across the Southeast Asian nation. (ABS-CBN News)
