BIR clarified issues of exporters on VAT Relief
September 20, 2016
In a response letter to the Export Development Council (EDC), Deputy Commissioner Nestor S. Valeroso of the Bureau of Internal Revenue (BIR) clarified the following which caused confusion to some exporters who avail of VAT Relief for their export products subject to 0% VAT:
1. Foreign buyers who transact with exporters only and not with the government are NOT required to secure Tax Identification Number (TIN) under Executive Order (EO) No. 98, series of 1999;
2. Non-Resident Foreign Corporations (NRFC)/Non-Resident Alien Not Engaged in Trade or Business (NRANETB) who buys products from Philippine exporters and do not generate income within the Philippines are not included in the coverage of Section 3(1)(ii) of Revenue Regulations (RR) 7-2012 on final withholding tax on income derived from sources within the Philippines; and
3. TIN is not a mandatory requirements/field in the Sales Data Screen of the BIR Relief System Module under the Quarterly Summary List of Sales for Export Sales made by VAT-registered persons whose sales are subject to zero percent (0%) rate. Hence, compliance report can be accomplished/submitted even if TIN of foreign buyers are left blank.
Dep. Comm. Valeroso further stated that “all persons liable for Value-Added Tax (VAT) are required to submit Quarterly Summary List of Sales for Export Sales that must contain information including the TIN of the buyer (only for sales that are subject to VAT), notwithstanding, information pertaining to sales made to buyers not engaged in business or practice of profession may still be required from the seller”.