BDB Law presents an advisory regarding BIR Revenue Memorandum Circular No. 96-2026, the Qualification of Export-Oriented Enterprises (EOEs) to VAT-Refund during the Transitory Period.
Below are clarifications on Revenue Memorandum Circular No. 37-2025:
- The EOEs are allowed to claim VAT refund on their passed-on VAT on local purchases and importations that are attributable to zero-rated sales covering the period beginning the effectivity of CREATE MORE (1) on November 28, 2024 until the issuance of the VAT zero-rating certification by the DTI-EMB (2), provided that such certification was issued within the transitory period (3).
- EOEs that met the 70% export threshold in the preceding taxable year but failed to secure certification from EMB, including during the transitory period, shall not be allowed for VAT refund covering the immediately succeeding year.
- Any unutilized input VAT may be carried forward to subsequent taxable quarters and applied against future VAT liabilities.
- A VAT refund is not allowed if the same VAT has already been reimbursed, credited, recovered, or previously utilized.
This Regulation takes effect immediately or on September 7, 2026.
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(1) Also known as the “Corporate Recovery and Tax Incentives for Enterprises Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.”
(2) Export Marketing Bureau of Department of Trade and Industry.
(3) It shall refer to the period from November 28, 2024 until December 31, 2025.
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