RR 9-2025

Revenue Regulations No. 9-2025 (issued February 27, 2025) implements Section 295(D) of the Tax Code as amended by RA No. 12066 (CREATE MORE), covering the treatment of local sales of goods and/or services by Registered Business Enterprises (RBEs). Local sales by RBEs are subject to 12% VAT regardless of the RBE's income tax regime (ITH, 5% GIE/SCIT, EDR, or RCIT) and regardless of location. For Business-to-Business (B2B) transactions, the buyer is liable to file and remit the VAT: per transaction for goods from economic zones/freeports (interim BIR Form 0605) and monthly for services from ecozones/freeports and purchases from BOI-registered enterprises (interim BIR Form 1600-VT, due by the 10th day of the following month), with the buyer issuing BIR Form 2307 to the RBE-seller. VAT-registered RBEs file quarterly VAT returns, while non-VAT registered (5% GIE/SCIT) RBEs submit quarterly summary lists of local sales. For B2C transactions, the consumer pays the VAT but the RBE-seller remits it to the government.