RMC No. 49-2022

RMC No. 49-2022 (April 20, 2022) amends parts of the Q&A in RMC No. 24-2022 to align them with the CREATE Act and its IRR. It provides that: (1) sales covered by the deferred RR No. 9-2021 that were declared VAT zero-rated from July 1, 2021 to December 9, 2021 remain zero-rated under the non-retroactivity rule (Sec. 246, Tax Code), while those declared VATable may follow the options in Q&A Nos. 8 and 9; (2) VAT treatment of sales by registered non-export locators or DMEs in Ecozones and Freeport Zones depends on whether they registered before or during the effectivity of CREATE (5% GIT locators are VAT-exempt entities; ITH locators zero-rate sales to registered export enterprises but charge VAT on sales to DMEs and customs-territory enterprises); (3) registered export enterprises that completed their ITH and shifted to 5% GIT or SCIT must change from VAT-registered to non-VAT within two months, unless they have other VATable activities; and (4) local suppliers of registered export enterprises need prior BIR approval (with IPA endorsement) for VAT zero-rating, with prior application not required until March 9, 2022, subject to three documentary requirements.