Tax Alert No. 18 [Revenue Memorandum Circular (RMC) No. 36-2022 dated 06 April 2022]

Prescribing the Uniform Template for VAT Zero Percent Certification to be Issued by Investment Promotion Agencies (IPAs) in relation to Q&A No. 34 of RMC No. 24-2022

RMC No. 36-2022 has been issued to prescribe the format of VAT Zero Percent 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 IPA shall issue annually a VAT Zero Percent Certification to REEs which shall indicate the following:

• Registered export activity (i.e. manufacturing, IT BPO, etc.);
• Tax incentives entitlement under agreed terms and conditions with validity period; and
  
• The applicable goods and services (or category thereof), i.e. raw materials, supplies, equipment, goods, packaging materials, services, including 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.

This circular also provides the templates for the VAT Zero Percent Certification to be issued for both REEs registered under Republic Act No. 11534, otherwise known as CREATE Act and for those existing REEs prior to CREATE Act.

Lastly, the BIR mandates that all IPAs provide a master list of all REEs which have been issued a VAT Zero Percent Certification for counterchecking purposes.