RMC No. 66-2025 — Clarification on certain issues pertaining to compliance with the documentary requirements in availing Value-Added Tax (VAT) zero-rating on local purchases of Duly-Registered Business Enterprises (RBEs)

R REPUBLIC OF THE PHILIPPINES

Bringing In Revenues for Nation-Building BUREAU OF INTERNAL REVENUE DEPARTMENT OF FINANCE National Office Building Diliman, Quezon City PILIPINAS BAGONG

JUL 0 2 2025

REVENUE MEMORANDUM CIRCULAR No.0.6_6 - 2 0. 2 5

SUBJECT: Clarification on Certain Issues Pertaining to Compliance with the Documentary

Requirements in Availing Value-Added Tax (VAT) Zero-Rating on Local Purchases of Duly-Registered Business Enterprises (RBEs)

TO: All Internal Revenue Officials, Employees and Others Concerned

I. BACKGROUND

the REE-buyer to provide a sworn declaration stating that the goods and/or services are directly and exclusively used for the production of goods and/or completion of services to be exported. among others, to its local supplier for the latter's documentation in case of post-audit by the This Circular is issued to provide clarification on whether or not there still a need for

No. 80-2023 for the availment of the zero percent (0%) VAT rate on local purchase of goods and services. Bureau of Internal Revenue (BIR), as required under Revenue Memorandum Circular (RMC)

amended by RR No. 10-2025, states that the "VAT zero-rating on local purchases of goods qualified RBEs." IPA, without prejudice, however, to the conduct of post audit investigation/verification by the shall be availed of on the basis of the VAT zero-rating certification issued by the concerned BIR that the goods are indeed directly attributable to the registered project or activity of the Paragraph 2, Section 4.106-5(c) of Revenue Regulations (RR) No. 16-2005, as

Similarly, Paragraph 4, Section 4.108-5(b)(8) of the above cited RR states that the "VAT

rating certification issued by the concerned IPA, without prejudice, however, to the conduct of zero-rating on local purchases of services shall be availed of on the basis of the VAT zero-

post audit investigation/verification by the BIR that the services are directly attributable to the registered project or activity of the qualified RBEs. BUREAU OFINTERNAL REVENUE IRDS MANAGFMENT DIVISION T}

JUL 0 2 2025

BY ADMIN UNIT e TMME:3

BIR National Office Bldg., Senator Miriam Defensor-Santiago Avenue, Diliman, Quezon City Trunkline: 8981-7000 ; 8929-7676 Website: www.bir.gov.ph Page 1 of 2

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H. CLARIFICATION

In light of the issuance of RR No. 10-2025, it is clarified that the submission of a sworn declaration by the RBE-buyer is no longer required to avail of the zero percent (0%) VAT rate The VAT Zero-Rate Certificate issued by the concerned Investment Promotion Agency (IPA) shall serve as the primary documentary basis for such availment. This is without prejudice to the BIR's authority to conduct post-audit verification to ensure that the purchases are directly attributable to the registered project or activity of the qualified RBE.

III. REPEALING CLAUSE

modified or revoked accordingly. All revenue issuances and BIR Rulings inconsistent herewith are hereby amended.

IV. EFFECTIVITY CLAUSE

known as the CREATE MORE Act. This Circular shall take effect from the passage of Republic Act No. 12066, commonly

All internal revenue officials, employees and others concerned are hereby enjoined to give this Circular as wide a publicity as possible.

Commissioner of Internal Revenue ROMEO D. LUMAGUI, JR.

I-2/IES BUREAU OF INTERNAL REVENUE

RFCORDS MANAGFMENT DIVISION

JUL 0 2 2025 AUMIN UNIT - 1 T Time: (3 Officer/in-Charge OIC-Depufty Commissioner LARRY M.BARCELO,CESO IV Legal Grbun (per RbAO N8) 0 00 8-5 5-202 E (

Date of Stgning: JUN.3-0-225

Subject: Clarification on Certain issues Pertaining to Compliance with the Documentary Requlrements in Availing Value-Added Tax (VAT) Zero-Rating on Local Purchases of Duly-Registered Business Enterprises (RBEs) Page 2 of 2