All registered export and domestic enterprises that will continue to avail of their existing tax incentives subject to Sections 1,2 and 3 of this Rule, may continue to enjoy the duty exemption, VAT exemption on importation, and VAT zero-rating on local purchases as provided in their respective IPA registrations; Provided, that registered export enterprises as defined under section 293(E) of the Act whose income Tax-Based incentives have expired, may continue to enjoy VAT zero-rating on local purchases until electronic sales reporting system of the bureau of internal revenue under Section 237-A of the Act is fully operational, or until the expiration of the transitory period referred to in Section 311(C) of the Act, whichever comes earlier; Provided, further , that an RBE classified as DME which is located inside the economic or freeport zone during the transitory period will be allowed register as a VAT Taxpayer; Provided, Finally, that the duty exemption, VAT exemption on importation, and VAT zero-rating on local purchases shall only apply to goods and services directly attributable to and exclusively used in the registered project or activity of said registered export enterprises.
These Rules shall apply prospectively; Provided that DMEs inside the economic or freeport zone that will opt to register as VAT taxpayers shall not be allowed to claim VAT refund for transactions prior to the effectivity of these Rules.
All existing rules and regulations or parts thereof which are inconsistent with the provisions of this IRR are hereby amended accordingly.