This Revenue Regulation implements the amendments introduced by RA No. 11976 (Ease of Paying Taxes[EOPT] Act), on the relevant provisions of Title IV – Value-Added tax and Title V – Percentage Tax of the Tax Code of 1997, as amended.

Under the Regulations, all references to “gross selling price”, “gross value in money”, and “gross receipts” shall now be referred to as the “GROSS SALES”, regardless of whether the sale is for goods under Section 106, or for services under Section 108 of the Tax Code.

The term “Invoice” will also now be used instead of Sales/Commetccial Invoices or Official Receipts.

All references to “receipts or payments” which was previously the basis for the recognition of sales of service under Title IV (Value-Added Tax) and Title V (Percentage Tax) of the Tax Code, shall now be referred to as “Billing” or “Billed”, whichever is applicable.

All provisions mentioning the VAT-exempt threshold of three million pesos shall now be read as “the amount or VAT threshold herein stated shall be adjusted to its present value every three (3) years using the Consumer Price Index (CPI), as published by the Philippine Statistics Authority (PSA)”.

It also provides the Specific Amendments to Sale or Exchange of Service Under Section 108 of the Tax Code, Specific to VAT-Exempt Transactions, Specific Amendments to Tax Credits, and Specific Amendments to claims for Refund/Tax Credit Certificate of Input Tax.

The Regulations also cover the output Value-Added Tax credit on uncollected receivables.