Philippine Economic Zone Authority
The Philippine Economic Zone Authority (PEZA) issued Memorandum Circular (MC) No. 2025-052, dated 29 September 2025, to clarify the scope of VAT exemption on importation and VAT zero-rating on local purchases under Section 18 of the Republic Act (RA) No. 12066 or the CREATE MORE Act.
The MC provides a list of goods and services considered “directly attributable” to the registered project or activity of the registered export enterprise or a registered high-value domestic market enterprise that may qualify for VAT exemption on importation or VAT zero-rating on local purchases.
Registered Business Enterprises (RBEs) may request confirmation from PEZA if their local purchases are not included in the list, provided that such purchases are directly attributable to, incidental to, or reasonably necessary for their registered project or activity. Each request must be supported by:
- A letter request in the company’s official letterhead using the attached template, duly signed by the highest responsible official.
- A notarized sworn affidavit attesting to the nature of the goods and services.
The Bureau of Internal Revenue (BIR) may still conduct a post-audit verification to ensure that these purchases are indeed directly attributable to the RBE’s registered project or activity.
Here are the links to the full text of the issuances: MC No. 2025-052, Request Letter Template, and Sworn Affidavit Template.