- Under the CREATE MORE law, Registered Business Enterprises (RBEs) are categorized into Registered Export Enterprises (REEs), High Value Domestic Market Enterprises (HVDMEs), and Domestic Market Enterprises (DMEs). REEs and HVDMEs receive both VAT and duty-free importation incentives, while DMEs only receive duty-free importation privileges. The law has shifted from a blanket application of incentives to a transactional, performance-based approach. All RBEs can sell to the domestic market, but these sales are subject to VAT. For business-to-business transactions, the buyer is now responsible for remitting VAT, with specific compliance requirements based on the nature of the transaction and the seller’s registration status.
Source: bdblaw.com.ph
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.
Latest Posts in "Philippines"
- Kiko Barzaga Proposes Abolishing 12% VAT for Greater Financial Freedom in the Philippines
- VAT Reduction to 10% Risks Fiscal Deficit, Benefits Wealthy, Warns Philippine Finance Department
- BIR Collects P2.8B from Digital Services VAT, Exceeds Compliance Expectations with 371 DSPs Registered
- BIR Falls Short of VAT Collection Target by P6.37 Billion in First Seven Months
- Philippine Court Clarifies Input VAT Refunds for Zero-Rated Sales in Electricity Sector Case
