FOR:
ALL REGISTERED EXPORT ENTERPRISES
ALL PEZA ZONE ADMINISTRATORS/ZONE MANAGER/OICs
FROM: Director General TERESO O. PANGA
DATE: 11 September 2023
SUBJECT: BIR Revenue Memorandum Circular (RMC) No. 80-2023
The Bureau of Internal Revenue (BIR) has recently issued Revenue Memorandum Circular (RMC) No. 80-2023 dated 09 August 2003, “Clarifying Issues Relative to the Implementation of Revenue Regulations (RR) No. 3-2023 and Other Related Concerns on Value-Added Tax (VAT) Zero-Rate Transactions on Local Purchases of the Registered Export Enterprises (REEs) and Other Entities Granted with VAT Zero-Rate Incentives under Special Laws and International Agreements.”
In particular, please be advised of the following:
- While prior application of BIR approval is no longer required for the availment of VAT-Zero rating incentive, the REE-buyer must still provide a certified copy of the following documents to its local supplier for the latter’s documentation in case of post-audit investigation/verification that the goods and/or services are indeed directly and exclusively used by the REE in its registered project or activity, to wit:
- a. VAT Zero-Rate Certification issued by the concerned IPA;
- b. Certificate of Registration (COR) issued by the BIR having jurisdiction over the head office/branch/freeport/ecozone location where the goods and/or services are to be delivered;
- c. COR issued by the concerned IPA stating all registered ecozone location; and
- d. A sworn affidavit executed by the REE-buyer, 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 or for utilities and other similar costs, the percentage of allocation be directly and exclusively used for the production of goods and/or completion of services to be exported, following the prescribed format under RMC 84-2022.
- Applications received prior to the effectivity of RR 3-2023 accompanied by appropriate VAT zero-rating certification issued by concerned IPA that are still pending with the BIR, shall be accorded VAT zero-rating treatment from the date of filing of such application subject to conduct of post audit by the BIR.
However, the following transactions are subject to twelve percent (12%) VAT:
Transactions that are entitled to VAT zero-rating but the seller failed to secure an approved application for VAT zero-rate prior to the effectivity of RR No. 3-2023
Transaction that was previously disapproved by the BIR prior to the effectivity of RR No. 3-2023 - For purposes of issuance of VAT Zero Rating Certificate and identification of goods and services that are directly and exclusively used for the registered activity, REEs should also submit to PEZA along with its request for VAT Zero Rating Certification, a Sworn Affidavit executed by the REEs, stating that the goods and/or services, other than those identified under the negative list, are directly and exclusively used for the production of goods and/or completion of services to be exported or for utilities and other similar costs, the allocation method used for determination of percentage allocated for goods and services directly and exclusively used for the production of goods and/or completion of services to be exported, following the prescribed format under RMC No. 84-2022 (attached to RMC No. 80-2023 as Annex A) and will be applied prospectively.
REEs that were already issued with VAT Zero Rating Certificate prior to the effectivity of BIR RMC 80-2023 are not required to secure from PEZA an updated VAT Zero Rating Certification with Sworn Affidavit. - Should the goods and/or services fall within the negative list, the REE is not precluded from further proving, with supporting evidence, to PEZA that such goods and/or services are indeed directly and exclusively used in the registered project or activity, by writing a formal letter addressed to the Director General, subject to separate evaluation and issuance of letter of confirmation. This is without prejudice to the BIR’s power to conduct post audit.
A copy of BIR RMC No. 80-2023 is hereto attached for your information and reference.
Please be guided accordingly.
VSS/RVSS/CVC/gdt/sbc