Philippines: The BIR has extended the e-invoicing deadline to 31 December 2026, giving e-commerce businesses, large taxpayers and CAS/CBA users more time to comply. Taxpayers must issue e-invoices in XML, JSON or other BIR-approved formats via accredited systems, and sales data reporting will begin once the central system is operational.

Philippines: The Court of Tax Appeals upheld the denial of Zuellig Pharma Asia Pacific Ltd's P59.81-million VAT refund claim after finding the company failed to meet documentary requirements. The court ruled that the lack of certificates of inward remittance for P2.88 million of zero-rated sales and non-compliant official receipts made the claim fatal.

Philippines: Deloitte Philippines highlights that e-invoicing could curb corruption by improving tax transaction transparency, but notes the government’s limited tech capacity and lack of clear guidance as key challenges. Revenue Regulations No. 11-2025 set a March 2026 deadline for covered taxpayers to issue electronic invoices, later extended to 31 December 2026 by RR No. 26-2025.

Philippines: The Supreme Court ruling and the CREATE MORE Act clarify VAT zero-rating eligibility for domestic market enterprises. DMEs that are high-value, with P15-billion investment or $100-million export sales, may qualify, while others may face 12% VAT on local purchases.

Philippines: The Supreme Court has upheld the constitutionality of the VAT refund law for foreign tourists, confirming that the incentive is a valid policy measure to promote tourism. The law allows non-resident foreign tourists to claim VAT refunds on purchases of at least P3,000 per transaction from accredited retailers, provided the goods are taken out of the Philippines within 60 days of purchase.

Philippines' VAT refund rules have evolved significantly since 1987, with recent changes under the Create More Act affecting zero-rated taxpayers. The Supreme Court clarified processing periods and documentation requirements in December 2025, tightening the 90+30 day rule.

Philippines Supreme Court upholds constitutionality of VAT refund law for foreign tourists, confirming the policy as a valid tourism incentive.

Philippines Supreme Court declares VAT refund for foreign tourists constitutional, upholding Republic Act No. 12079. The decision affirms the state’s right to offer fiscal incentives to boost tourism without violating equal protection.

Philippines Supreme Court upholds law allowing VAT refunds for foreign tourists on purchases of at least P3,000, valid for goods taken out within 60 days.

Philippines: The article outlines how VAT refund rules have evolved since 1987, detailing changes in claim periods, documentation, and appeal procedures.

The Philippine Bureau of Internal Revenue (BIR) has abolished its dedicated VAT audit units under RAO 4-2026, effective June 1, 2026, integrating audit functions into existing offices. The reform introduces a single-instance audit framework, issuing only one LOA per taxpayer per taxable year, and a verification system to prevent fake or unauthorized LOAs.

The Court of Tax Appeals (CTA) En Banc denied FMC Switzerland II GMBH’s petition for review of a P10.5‑million VAT refund claim, upholding the earlier dismissal for lack of jurisdiction. The decision hinged on the BIR’s failure to act within the 90‑day period required by Section 112(C) of the National Internal Revenue Code, and FMC’s late filing of its petition beyond the November 26, 2021 appeal deadline.

The BIR issued a circular on June 2, 2026, tightening VAT enforcement for overseas digital service providers in the Philippines. The circular mandates that providers collect 12% VAT on payments received before the regime’s June 2025 effective date, and requires non‑resident providers to register and file returns even for VAT‑exempt B2C supplies. It also clarifies VAT treatment for platform operators and digital advertising services.

Manila Bulletin reports that the Philippine BIR has clarified that bilateral tax treaties do not exempt foreign digital service providers from the country's 12% VAT. The new guidance, issued in RMC No. 59‑2026 on June 2, 2026, requires non‑resident providers to register and file VAT returns, and outlines reverse‑charge rules for cross‑border B2B services. It also details how online booking platforms and pre‑existing subscriptions are taxed.

The BIR expanded the VAT exemption list for essential medicines in April 2026, increasing the number of exempt chronic‑condition drugs to 2,263 from 2,242 in December 2025. This move aims to reduce out‑of‑pocket healthcare costs and boost demand for locally produced generic medicines. The commentary notes potential benefits for domestic manufacturers but highlights ongoing challenges such as high out‑of‑pocket spending and supply‑chain constraints.

The Philippine Tax Whiz outlines the VAT exemptions available to natural gas stakeholders under Revenue Regulation No. 2‑2026. The guide explains that indigenous natural gas purchases and sales, as well as electricity generation using indigenous gas, are fully VAT‑exempt, and details the documentary requirements and eligible parties. It also highlights the need to indicate the exemption in the Quarterly VAT Declaration.

Philippine lawmakers have introduced House Bill No. 8827 to cap the value‑added tax on petroleum products during a national energy emergency. The bill would limit the VAT base to the Pre‑Emergency Reference Price, excluding any incremental emergency increase, and amend Sections 106(A) and 107(A) of the National Internal Revenue Code.

The Philippine government has issued a VAT regulation exempting indigenous natural gas and related power generation activities. The exemption applies to indigenous natural gas, aggregated gas attributable to it, electricity generated from it, and ancillary services, subject to endorsement from the Department of Energy and certification of usage. The measure takes effect 15 days after publication, with specific limitations and permit requirements.

The Philippine Bureau of Internal Revenue (BIR) has announced that transactions involving indigenous natural gas are exempt from value-added tax (VAT). This decision applies to all such transactions and is intended to support indigenous communities.

The Philippines has advanced the implementation of VAT exemptions for indigenous natural gas, electricity generated from it, and related ancillary services. The exemptions, part of Republic Act No. 12120, will take effect early April 2026 and require certification from the Department of Energy and validation by the Oil and Electric Power Industry Management Bureaus.