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Application for vat zero rating bir.Application Forms

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New VAT zero-rating rules and requirements under CREATE – BusinessWorld Online

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Ничего себе маленькая шишка, – подумал Беккер, вспомнив слова лейтенанта. Посмотрел на пальцы старика – никакого золотого кольца. Тогда он дотронулся до его руки. – Сэр? – Беккер легонько потормошил спящего.

 – Простите, сэр… Человек не шевельнулся.


Application for PEZA VAT zero rating by email – Roque Law


The said advisory also informed the taxpaying public that they need to follow the existing guidelines and procedures for these applications to be processed, which refer to Revenue Memorandum Order RMO No. The Philippines adheres to the destination principle for VAT. Under this principle, goods and services are taxed only in the country where these are consumed.

Therefore, exports are zero-rated, but imports are taxed. Such practice makes the seller internationally competitive by allowing the refund or credit of input taxes that are attributable to export sales.

RBEs are given full relief from VAT, with the goal of making the Philippines a prime location of internationally competitive economic zones. Looking back, RA No. Thus, without an approved application for effective zero-rating, the transaction otherwise entitled to zero-rating shall be considered exempt.

Hence, it is important to understand that approval for VAT zero-rating is required only for effectively zero-rated transactions based on RMO No. At that time, effectively zero-rated transactions include:. Export sales under Executive Order No. Sale of goods, supplies, equipment, and fuel to persons engaged in international shipping, or international air transport operations;.

Sales to persons or entities whose exemption under special laws or international agreements, to which the Philippines is a signatory, effectively subjects such sales to zero-rate;. Services rendered to persons engaged in international shipping, or international air transport operations, including leases of property for use, and;.

Thus, RR No. To note, sales made to BoI-registered enterprises were already treated as subject to automatic zero-rating, hence no prior application was needed. Moreover, RR also deleted the entire provision on the requirement of prior application for VAT zero-rating for all transactions. Others insisted that deleting the provision was an oversight in the drafting of the said regulations. What they perhaps failed to notice was that a change in the nature of the zero-rating of the sales to export processing zones from being effectively zero-rated, to automatic zero-rating, would actually mean that no prior application would be needed, since automatic zero-rating does not require prior application, unlike an effective zero-rating.

Given the landscape, could tax advisories have the same effect as BIR revenue regulations, which overturn RR ? Could it be treated like a Memorandum Circular issued merely for the internal administration of the BIR?

It also bears noting that as early as , the Supreme Court held that BIR regulations additionally requiring an approved prior application for effective zero-rating cannot prevail over the clear VAT nature of transactions as can be perused from the supporting documents. The Supreme Court also held that the additional requirement grants unfettered discretion to officials or agents who, without fluid consideration, are bent on denying a valid application; and that administrative convenience cannot thwart legislative mandate.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. Cherry Liez O. Sign in. Forgot your password? Get help. Password recovery. BusinessWorld Online. MUFG raises outlook on Philippine growth to 6. All rights reserved. Read our privacy guidelines. ASEAN taxation cooperation via automatic information exchange. Why data governance matters.


Application for vat zero rating bir. New VAT zero-rating rules and requirements under CREATE

Tara T.