Philippines: Guidance on books of accounts, VAT zero-rate documentation requirements
Revenue Memorandum Circular (RMC) Nos. 065-2025 and 066-2025
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular (RMC) No. 065-2025 (dated July 2, 2025) providing clarification on the types of books of accounts that new business taxpayers can register with the BIR:
- Manual books of accounts
- Loose-leaf books of accounts (LLBA)
- Computerized books of accounts (CBA)
Taxpayers who opt to use LLBA and CBA are not required to register manual books of accounts. However, they must secure a permit to use (PTU) loose leaf books of accounts or an acknowledgment certificate (AC) for CBA or computerized accounting system (CAS) before its use. Since these permits can only be processed after a taxpayer identification number (TIN) has been issued, the registration of LLBA or CBA cannot be processed simultaneously with the issuance of TIN. Further, the registration of the types of books of accounts mentioned above is not mandatory during business registration as RMC No. 03-2023 prescribes a registration period for such. Taxpayers using LLBA or CBA without approved PTU or AC at the start of business operations are liable for failure to make entries or recordings.
The BIR also issued RMC No. 066-2025 (dated July 2, 2025) clarifying that the submission of a sworn declaration by the registered business enterprise (RBE)-buyer stating that the goods and/or services are directly and exclusively used for the production of goods and/or completion of services to be exported to its local supplier is no longer required in order to avail the zero percent (0%) value added tax (VAT) rate on local purchase of goods and services. Accordingly, the VAT zero-rate certificate issued by the concerned Investment Promotion Agency (IPA) is the only necessary documentation.
Read a July 2025 report prepared by the KPMG member firm in the Philippines