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.
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BusinessWorld · 4 days ago
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.
1stopVAT · 12 days ago
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 · 21 days ago
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 Manila Times · 23 days ago
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.
Rappler · 2 months ago
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.
Manila Times · 3 months ago
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.
Key Takeaways
The BIR has adopted a single-instance audit framework, issuing only one LOA per taxpayer per taxable year.
The change took effect on June 1, 2026, as per RAO 4-2026.
A verification system has been introduced to protect taxpayers from fake or unauthorized LOAs.
Primary source
Read the full article at Manila TimesThis summary was published on VATfaqs.com on 25 June 2026. It relates to VAT developments in Philippines. The original source is Manila Times.
