The Department of Trade and Industry (DTI) vowed to resolve before the end of the year the complaints posed by investors on the inconsistencies in value-added tax (VAT) exemption.
DTI Undersecretary Ceferino Rodolfo at the National Export Congress on Wednesday also announced the Senate has calendared the ratification of the Regional Comprehensive Economic Partnership (RCEP).
Rodolfo said DTI Secretary Alfredo Pascual has been working with the Department of Finance on the VAT exemption, particularly the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises Act and the revenue regulations of the Bureau of Internal Revenue.
As this is a priority of the DTI, Rodolfo said the matter is hoped to be settled at a meeting on December 14.
Prior to the implementation of CREATE , the sale of goods and services by a VAT-registered seller to registered enterprises in ecozones and freeport zones was given a VAT zero rating but a revised BIR memorandum circular says otherwise which means only direct exports are entitled to VAT exemption.
This resulted to a lot of confusion among exporters.
Rodolfo also announced the Senate has sent to the Committee on Foreign Relations the request to ratify RCEP which will signal discussions on the much-awaited ratification process. – Irma Isip
