RR No. 1-2026 — Amending Section 3, 4, and 7 of RR No. 9-2025 to clarify filing and payment rule for VAT on local ale , provide optional value-added tax (VAT) regi tration for certain Regi tered Bu ine Enterpri e (RBE ), extend the deadline for y tem reconfiguration, and exclude certain enterpri e and activitie from the coverage of VAT on local ale of RBE under Section 295(D) of the NI

Bringing In Revenues for Natton-Building BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BiR National Office Building Diliman, Quezon Ciry PILIPINAS BAGONG

DEC 1 0 2025

REVENUE REGULATIONS NO. 001-2026

SUBJECT: Amending Sections 3, 4, and 7 of Revenue Regulations (RR) No. 9-2025 to Clarify Filing and Payment Rules for VAT on Local Sales, Provide Optional Value-Added Tax (VAT) Registration for Certain Registered Reconfiguration, and Exclude Certain Enterprises and Activities from the National Internal Revenue Code of 1997 (Tax Code), as Amended by Section 18 of Republic Act (RA) No. 12066 Business Enterprises (RBEs), Extend the DeadIine for Coverage of VAT on Local Sales of RBEs Under Section 295(D) of the System

TO: All Internal Revenue Officers and Others Concerned

relation to Section 32 of R.A. No. 12066, these Regulations are hereby promuigated to amend business activities from the coverage of VAT on local sales of RBEs under Section 295(D) of compliance with invoicing system reconfiguration. Sections 3, 4, and 7 of RR No. 9-2025 to clarify the manner of filing and payment of VAT on the Tax Code. as amended by Section 18 of RA No. 12066, and extend the deadline for local sales, provide optional VAT registration for certain RBEs, exclude certain enterprises and Pursuant to the provisions of Sections 244 and 245 of the Tax Code. as amended. in

SECTION 1. Section 3(A)(3)(a) of RR No. 9-2025 is hereby amended to read as follows:

"a. For purchase of goods from economic zones or freeport. -- The filing and payment of the "VAT on B2B local sales by RBEs " shall be on a per transaction and shall be immediately transmitted to the RBE, as part of the attachments basis using the BIR Form to be prescribed by the BIR for this purpose through a separate revenue issuance. In the meantime, BIR Form No. 0605 shall be utilized prior to the release of goods from the economic zone or freeport.

However, in cases where the shipment of the goods purchased in the ecozone invoices together with the list of all the invoices covered shall be presented to thc BOC prior to its release." or freeport is in bulk (e.g., delivered through a single container truck) and is covered by several invoices, the buyer may opt to pay the VAT due thereon in a single payment. The BIR Form No. 0605 covering the payment of all the

y UREAU OF INTERNALREVENUE COROS MANAGFMENT GIVISION L BIR National Office Bldg.. Senator Miriam Defensor-Santiago Avenue, Diliman, Quezon City Trunkline: 8981-7000 ; 8929-7676 Website: www.bir.gov.ph Page I of 3

FEB 16 2026

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BY: AdMIN UNIT -1 TIME: I:9AM

SECTION 2. Section 4 of RR No. 9-2025 is hereby amended to read as follows:

"SECTION 4. OPTIONAL VAT REGISTRATION AND EXCLUSIONSJ FROM THE COVERAGE OF VAT ON LOCAL SALES UNDER SECTION 295(D) OF THE TAX CODE, AS AMENDED.

A. OPTIONAL VAT REGISTRATION. - An RBE availing of the 5% Special Corporate Income Tax (SCIT) or Gross Income Earned (GIE)

regime, and whose registered activities are all under the same income tax incentive, may opt to register as a VAT taxpayer solely for purposes of its local sales. Such VAT registration shall not affect the RBE's entitlement to its existing fiscal and non-fiscal incentives, incluiding VAT zero-rating on Iocal purchases and VAT exemption on importation, provided these are directly attributable to its registered activities.

an RBE that elects VAT registration under this provision shall not be allowed to cancel such registration under Section 236(E)(2) of the same Code for a period of three (3) years from the date of registration. In accordance with Section 236(G) of the Tax Code, as amended.

B. EXCLUSIONS FROM THE COVERAGE OF VAT ON LOCAI SALES UNDER SECTION 295(D) OF THE TAX CODE, AS do not qualify for VAT zero-rating on Iocal purchases or VAT exemption on importation despite being registered with any of the Investment Promotion Agencies are subject to VAT on both their iocal purchases and AMENDED. -- VAT-registered Domestic Market Enterprises (DMEs) that

importation.

BIR would result in accumulated unutilized input VAT from local purchases and importations. which are not eligibie for refund under Section sales mandating the buyer to pay and remit the corresponding VAT to the 112(A) of the Tax Code. The application of Section 295(D) of the Tax Code to their local

corresponding VAT to the BIR as a regular VAT taxpayer. buyer's payment and remittance of VAT (B2B transactions) under Section 295(D) of the Tax Code, as amended. The RBE-seller shall file and pay the To address such scenario, their local sales shall not be subject to the

from the coverage of Section 295(D) of the Tax Code, as amended: In addition, the following sale transactions/entities are excluded

1. Sale of the following goods/services: h. VAT zero-rated goods under Section 106(A)(2); VAT zero-rated services under Section 108(B):

o VAT-exempt or zero-rated transactions under Title XIII of VAT-exempt transactions under Section 109: and the Tax Code.

E BUREAI RECORDS MANAGEMENT DIVISION wa Revenue Regulations {RR} Amending Sectlons 3, 4, and 7 of RR No. 9-2025 Regarding Value-Added Tax (VAT) on locat Sales of Reglstered Business Enterprises {RBEs) Under Section 295(D} of the National Internal Revenue Code of 1997 {Tax Code), as Amended by Section 18 of Repubtlc Act (RA) No.12056 OEINERNALREVENU Page 2 of 3

FEB 16 2026

n VE L ADMIN UNIT1 HraAm EE

2. Entities that have registered with the Board of Investments by Title XII of the Tax Code, as amended. virtue of a special law and are not availing of incentives under

3. Local sales made by RBEs that pertain to business activities not registered with any of the IPAs. including the sales of scraps (e.g., materials. machineries, and property, plant and equipment) shall be subject to the regular VAT at 12%. The RBE-seller shall file and pay the corresponding VAT to the BIR as a regular "VAT taxpayer."

SECTION 3. The effectivity of the provision under Section 7 of RR No. 9-2025. which requires RBEs using registered Cash Register Machines/Point-of-Sales (CRM/POS) Computerized Accounting System (CAS), Computerized Books of Accounts with Accounting

by replacing the term VAT/VAT Amount' in the breakdown of sales with VAT on Local Sales.' or adding the same where VAT/VAT Amount' is not appiicable. is hereby extended Records. or other registered invoicing system/software to reconfigure or rename their system until December 31, 2026. The Commissioner may further extend the deadline as may be necessary.

SECTION 4. SEPARABILITY CLAUSE. - If any of the provisions of these Regulations is subsequently declared invalid or unconstitutional, the validity of the remaining provisions hereof shall remain in full force and effect.

parts thereof which are contrary to and inconsistent with the provisions of these Regulations are hereby repealed, amended or modified accordingly. SECTION 5. REPEALING CLAUSE. - All other issuances and rules and regulations or

SECTION 6. EFFECTIVITY. - These Regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR Official Website. whichever comes first.

Recommending Approval: FRE Secretary of Finance FEB 1 1 2026 ICK D.GO

CHARLITO MARTIN R. MENDOZA Commissioner of Internal Revenue MN RECORDS MANAGEMENT UIVISION UREAU OF INTERNAL REVENU A FEB 16 2026 A 3

BY aAdmin unit - 1 TIME: TA ll:s9Am Revenue Regulatlons (RR) AmendIng Sections 3, 4, and 7 of RR No. 9-2025 Regarding Vaiue-Added Tax (VAT) on Local Sales of Reglstered Business Enterprises {RBEs) Under Section 295{Q} of the National Internal Revenue Code of 1997 {Tax Code}, as Amended by Sectlon 18 of Republic Act {RA) No.12056 Page 3 of 3 mAArTX

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