RMC No. 80-2023

RMC No. 80-2023 (August 9, 2023) clarifies the implementation of RR No. 3-2023 on VAT zero-rating of local purchases of Registered Export Enterprises (REEs) and other entities granted VAT zero-rate incentives under special laws and international agreements. With RR No. 3-2023 effective April 28, 2023, local suppliers of REEs no longer need prior BIR approval for VAT zero-rating; qualification requires the purchase to be directly and exclusively used in the registered project or activity and not on the negative list. REE-buyers must still give suppliers certified copies of the IPA VAT Zero-Rate Certification, the BIR and IPA Certificates of Registration, and a sworn affidavit per RMC No. 84-2022 for post-audit. Pending applications are zero-rated from filing date, but sales where the seller failed to secure approval, and previously disapproved transactions, are subject to 12% VAT; VAT-registered REEs on 5% GIT or SCIT may claim input VAT or a refund under Section 112(B) NIRC. Zero-rating does not extend to HMO plans for dependents or employees not directly involved in the registered operations. Applications are likewise not required for local suppliers of other entities with zero-rate incentives under special laws and international agreements, subject to alternative documentary requirements.