- The Bureau of Internal Revenue (BIR) has issued guidelines for companies to become VAT-registered taxpayers under the CREATE Act.
- Companies must secure a certification excluding VAT from the 5% GIE and submit a letter of intention and a deed of waiver.
- The waiver of rights to avail of the VAT exemption incentive is irrevocable and binding.
- The CREATE law reduced corporate income tax rates and maintained some tax incentives.
- Registering as a VAT taxpayer allows companies to avail of VAT refunds or charge output VAT to customers.
- The intention of the legislation dates back to the Ramos administration and was repackaged as a stimulus package during the pandemic.
Source: business.inquirer.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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