VAT oversight on local sales transferred to BIR from BoC

THE Bureau of Customs (BoC) has clarified that sales to domestic market enterprises will now be treated as local transactions, shifting oversight to the Bureau of Internal Revenue (BIR) for value-added tax (VAT) purposes.

“The sales of goods and services to domestic market enterprises or nori-Registered Business Enterprises (RBEs) are now considered ‘local sales,’ which fall outside the mandate of the BoC, and is now under the jurisdiction of the BIR,” the agency said in a memorandum circular.

The change followed Revenue Regulations No. 009-2025, outlining the rules for implementing the provisions of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

President Ferdinand R. Marcos Jr. signed the CREATE MORE Act in 2024, which further reduced the corporate income tax to 20% from 25% for RBEs.

RBEs are individuals or companies registered with an Investment Promotion Agency qualify for special tax incentives, particularly export-oriented or high-value domestic ventures. — Aubrey Rose A. Inosante