The Philippines’ Bureau of Internal Revenue has clarified transitional VAT refund rules for qualified export-oriented enterprises, covering input taxes incurred during the period between 28 November 2024 and 31 December 2025 and setting separate documentary requirements based on claim filing dates.
The Philippines’ Bureau of Internal Revenue released Revenue Memorandum Circular (RMC) No. 96-2026 on 7 September 2026. BIR Commissioner Charlito Martin R. Mendoza issued the circular to provide guidance on how qualified Export-Oriented Enterprises (EOEs) handle Value-Added Tax refund claims during a defined transition period.
The circular addresses a specific gap in Section III(1)(a) of RMC No. 37-2025. It clarifies which input taxes EOEs may recover as the government shifted EOE certification authority to the Department of Trade and Industry-Export Marketing Bureau.
New refund window for transitional period
The transitory period runs from 28 November 2024 through 31 December 2025. This window aligns with the effective date of Republic Act No. 12066, commonly known as the CREATE MORE Act.
EOEs that obtained their DTI-EMB zero-rating certificates during this timeframe may claim VAT refunds for passed-on taxes. The refund period extends from 28 November 2024 until the specific date each enterprise received its certification certificate.
The DTI-EMB issued these certificates on varying dates. Records show certificates were issued from as early as 14 May 2025 to as late as 26 December 2025. This variance prompted the need for clearer refund parameters.
Documentary requirements separate by filing date
The BIR revised its supporting document checklist requirements to account for different filing periods. The revision splits compliance obligations based on when claims are submitted.
Enterprises that filed refund claims before 1 April 2025 must submit documentation under Annex A.1.1 of the amended circular. Those filing from 1 April 2025 onwards follow Annex A.1.2. This separation reflects regulatory changes that took effect on 10 April 2025, when the BIR originally issued RMC No. 37-2025.
The DTI published its own Department Administrative Order No. 25-03 on 28 March 2025 to establish the certification framework for these enterprises.
Consequences of missing the certification deadline
Enterprises that reached the 70% export sales threshold but failed to secure DTI-EMB certification by 31 December 2025 face restrictions. These entities cannot claim a cash VAT refund in the immediately following taxable year.
However, the regulation does not eliminate their input tax entitlement. Unused input VAT balances may carry forward to subsequent quarters. Enterprises may apply these carried-forward amounts against future VAT liabilities under standard tax provisions.
The circular reinforces that all refund claims must meet Section 112 requirements of the Philippine Tax Code. Only input taxes directly attributable to zero-rated export sales qualify for recovery. The BIR will not process refunds where the input tax has already been reimbursed, credited, or used elsewhere.
The circular took effect immediately upon publication on 7 September 2026.
