RMC No. 152-2022

RMC No. 152-2022 clarifies the transition to the new VAT zero-rating rules for Registered Export Enterprises (REEs) under CREATE. Local purchases of REEs whose incentives have expired are subject to 12% VAT beginning December 10, 2021, but because RMC No. 24-2022 confirming this came out only on March 9, 2022, transactions from December 10, 2021 to March 8, 2022 shall remain VAT zero-rated. For that transitory period, sellers and REE buyers may either keep the 12% VAT treatment or revert the transaction to zero-rating after reimbursing the VAT, with corresponding amendments to VAT returns and cancellation/replacement of invoices or receipts. The circular also requires REEs under the 5% GIT/SCIT regime to shift to non-VAT registration within two months; they are not subject to Percentage Tax, and they remain entitled to VAT zero-rating on qualifying local purchases until the end of their incentive period.