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Clarifying Issues Relative to Revenue Regulations (RR) No. 21-2021

On March 9, 2022, the Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 24-2022 dated February 23, 2022. The Circular clarifies issues relative to Revenue Regulations (RR) No. 21-2021 implementing the amendments to the Value-Added Tax (VAT) Zero-Rating Provisions Under Sections 106 and 108 of the National Internal Revenue Code of 1997 (Tax Code), in relation to Sections 294(E) and 295(D), Title XIII of the Tax Code, introduced by Republic Act No. 11534 (CREATE Act), and Section 5, Rule 2, and Section 5, Rule 18 of the CREATE Act Implementing Rules and Regulations.

RMC No. 24-2022 states that: “… Circular is issued to clarify the transitory provisions under RR No. 21-2021 and certain issues pertaining to the effectivity and VAT treatment of transactions by registered business enterprises (RBEs) particularly the registered export enterprises.”

This thirteen (13) page Circular consists of the following:

I. Clarification of Applicable Rules
II. Effectivity and Transitory Provisions
III. VAT Treatment of Sale to Registered Export Enterprises Upon the Effectivity of CREATE Act
IV. Taxability of Existing Export Enterprises Registered Prior to CREATE Act
V. Application for VAT Zero-Rating
VI. Refund by Local Suppliers and Recovery of Input VAT Passed on to Registered Export Enterprises

Please read the full text of RMC No. 24-2022 here: https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2022%20RMCs/RMC%20No.%2024-2022.pdf

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