Philippines: Government issued Circular for zero-rated VAT incentives
Circular No. 152-2022 was issued by the Philippine Bureau of Internal Revenue. The Circular seeks to clarify the application of zero-rated VAT incentives under Title XIII, Sections 294(E) and 295(D).
The memorandum addresses the following:
- 0% VAT rate to specific transactions that were previously subject to 12% VAT
- Registered Export Enterprises (REEs) with expired incentive periods are subject to 12%VAT
- Details on the procedure when a buyer qualifies for zero-rate VAT, but the seller imposed a 12% VAT rate during the transition period.
- Change of the registration status of specific REEs that are subject to the 5% gross income tax (GIT)/special corporate income tax (SCIT) regimes from VAT to non-VAT
The purpose of the Circular is to give more information and guidance on things that have happened while the temporary rules of Revenue Regulation (RR) No. 21-2021 and those of Revenue Memorandum Circulars (RMC) Nos. 24-2022 and 49-2022 have been in effect.
Source: bir.gov.ph
