The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 96-2026 to clarify the VAT refund rules for export-oriented enterprises (EOEs) under RMC No. 37-2025. The clarification addresses uncertainties arising amid the transition to the VAT zero-rating certification framework introduced under the CREATE MORE Act.
Under RMC No. 37-2025, EOEs that incurred VAT on local purchases and importations following the effectivity of the CREATE MORE Act were allowed to claim VAT refunds while the VAT zero-rating certification process was being implemented. However, because VAT zero-rating certifications were issued on different dates during 2025, questions arose on whether VAT incurred before certification remained refundable.
To address this, RMC No. 96-2026 clarifies that qualified EOEs may claim VAT refunds for passed-on VAT on local purchases and importations attributable to zero-rated sales from 28 November 2024, the effectivity date of the CREATE MORE Act, until the date of issuance of their VAT zero-rating certification by the Department of Trade and Industry - Export Marketing Bureau (DTI-EMB), provided that the DTI-EMB VAT zero-rating certification was issued within the prescribed transitory period ending 31 December 2025.
The clarification provides greater certainty for qualified EOEs by confirming that refundable input VAT incurred during the transition period may still be recovered despite delays in obtaining certification. However, EOEs that failed to secure the required DTI-EMB certification, including during the transitory period, are not entitled to VAT refunds for the immediately succeeding year, although any unused input VAT may still be carried forward and applied against future VAT liabilities in accordance with existing rules.
Affected taxpayers should evaluate whether they incurred passed-on VAT during the transition period that may qualify for a refund. EOEs should likewise ensure that their DTI-EMB certification and supporting documents are complete, as refund claims remain subject to the substantiation, attribution, and verification requirements under Section 112 of the Tax Code and existing BIR regulations.
Source:
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 16 September 2026
