The Bureau of Internal Revenue (BIR) has clarified that qualified export-oriented enterprises may seek refunds for value-added tax paid while waiting for their zero-rating certification, provided they met the requirements during the transition to the new system.

Revenue Memorandum Circular No. 96-2026, issued Sept. 7, amends the VAT refund guidelines under RMC No. 37-2025 and covers eligible VAT incurred on local purchases and importations linked to qualified zero-rated sales beginning Nov. 28, 2024.

The clarification applies to export-oriented enterprises that secured their VAT zero-rating certification from the Department of Trade and Industry-Export Marketing Bureau within the transition period that ended Dec. 31, 2025.

To qualify, an enterprise must have met the 70-percent export threshold and obtained the required certification within the prescribed period. VAT incurred before the certification was issued may be included in a refund claim, subject to existing tax rules.

BIR Commissioner Charlito Martin Mendoza said the measure provides clearer treatment for companies that received their certifications on different dates while the new system was being implemented.

“If they complied with the requirements and their certification was issued within the prescribed period, the VAT they properly incurred while waiting may be refunded in accordance with the law,” Mendoza said.

The BIR, however, said companies that met the 70-percent export threshold but failed to secure the required certification, including during the transition period, cannot claim a VAT refund for the immediately succeeding year.

Unused input VAT may instead be carried forward to succeeding taxable quarters and applied against future VAT liabilities.

Refund claims remain subject to Section 112 of the National Internal Revenue Code, including requirements for proper documentation and proof that the input VAT is directly attributable to qualified zero-rated sales.

VAT that has already been reimbursed, credited, adjusted, recovered from suppliers or otherwise used cannot be claimed again.

The BIR said the circular seeks to provide more predictable tax administration and support compliance, investment and ease of doing business.