Philippines Tax Agency Clarifies VAT Zero-Rated Incentives

The Philippine Bureau of Internal Revenue Dec. 7 issued Revenue Memorandum Circular No. 152-2022, clarifying zero-rated VAT incentives. The clarification includes: 1) transactions that have become subject to VAT; 2) that registered export enterprises (REEs) whose incentives period has already expired, are subject to 12 percent VAT; 3) that zero-rated VAT, however, applies for these REEs from the Dec. 10, 2021, effective date of RR No. 21-2021, to the March 8, 2022, effective date of RMC No. 24-2022; 4) information on the procedure for when the purchaser is qualified for the zero-rate VAT but the seller imposed a 12 percent ...