RMC No. 36-2022: Uniform Template for VAT Zero Percent (0%) Certification

BIR Issued RMC No. 24-2022 on March 9, 2022, to clarify issues related to RR No. 21-2021 implementing the amendments to the VAT Zero Rating provisions under Sections 106 and 108 of the National Internal Revenue Code of 1997 (Tax Code).

In line with this, on April 6, 2022, the BIR has issued the Revenue Memorandum Circular no. 36-2022 in relation to Q & A No. 34 of RMC No. 24-2022 to prescribe the format of VAT Zero Percent (0%) Certification issued by IPAs to the duly registered export enterprises (REEs).

Question and Answer No. 34 of RMC No. 24-2002 provides that the concerned Investment Promotion Agency (IPA) shall issue annually a VAT zero percent (0%) certification to REEs which shall indicate the following:

(i) Registered export activity (i.e. manufacturing, IT BPO, etc);

(ii) Tax incentives entitlement under agreed terms and conditions with validity period; and

(iii) The applicable goods and services (or category thereof), i.e. raw materials, supplies, equipment, goods, packaging materials, services, including the provision of basic infrastructure, utilities, and maintenance, repair and overhaul of equipment, and other expenditures directly attributable to the registered project or activity without which the registered project or activity cannot be carried out. 

Relative thereto, attached as Template I (with Annex “A”), is the format of VAT Zero Percent (0%) Certification to be issued to REEs which are registered under Republic Act (RA) No. 11534, otherwise known as CREATE Act. Likewise, attached, as Template 2 (with Annex “A”), is the format of VAT Zero Percent (0%) Certification to be issued to existing REEs prior to CREATE. 

All IPAs shall be required to provide the BIR with a master list of all REEs which have been issued a VAT Zero Percent (0%) Certification, for counterchecking purposes. The said master list shall be submitted to the Assistant Commissioner, Assessment Service, Attention: The Chief, Audit Information, Tax Exemption and Incentives Division and email the same to: aiteid_ies@bir.gov.ph.