BIR has issued Revenue Regulation (RR) No. 1-2026, which amends the provisions of Sections 3, 4 and 7 of RR No. 9-2025 to clarify manner of filing and payment of VAT on local sales, provide optional VAT registration for certain RBEs, exclude certain enterprises and business activities from the coverage of VAT on local sales of RBEs under Section 295(D) of the Tax Code, as amended by Section 18 of RA No. 12066, and extend the deadline for compliance with invoicing system configuration.

The following amended policies and guidelines shall be observed in this regard:

Section 3(A)(3)(a) of RR No. 9-2025 is hereby amended to read as follows:

“a. For purchase of goods from economic zones or freeport. The filing and payment of the “VAT on B2B local sales by RBEs” shall be on a per transaction basis using the BIR Form to be prescribed by the BIR for this purpose through a separate revenue issuance. In the meantime, BIR Form No. 0605 shall be utilized and shall be immediately transmitted to the RBE, as part of the attachments prior to the release of goods from the economic zone or freeport.

However, in cases where the shipment of the goods purchased in the ecozone or freeport is in bulk (e.g., delivered through a single container truck) and is covered by several invoices, the buyer may opt to pay the VAT due thereon in a single payment. The BIR Form No. 0605 covering the payment of all the invoices together with the list of all the invoices covered shall be presented to the BOC prior to its release.”

Section 4 of RR No. 9-2025 is hereby amended to read as follows:

“SECTION 4. OPTIONAL VAT REGISTRATION AND EXCLUSIONS FROM THE COVERAGE OF VAT ON LOCAL SALES, UNDER SECTIONS 295(D) OF THE TAX CODE, AS AMENDED

A. OPTIONAL VAT REGISTRATION. — An RBE availing of the 5% Special Corporate Income Tax (SCIT) or Gross Income Earned (GIE) regime, and whose registered activities are all under the same income tax incentive, may opt to register as a VAT taxpayer solely for purposes of its local sales. Such VAT registration shall not affect the RBE’s entitlement to its existing fiscal and non-fiscal incentives, including VAT zero-rating on local purchases and VAT exemption on importation, provided these are directly attributable to its registered activities.

B. EXCLUSIONS FROM THE COVERAGE OF VAT ON LOCAL SALES UNDER SECTION 295(D) OF THE TAX CODE, AS AMENDED. — VAT-registered Domestic Market Enterprises (DMEs) that are duly registered with Investment Promotion Agencies (IPAs) and that import goods or services shall continue to be subject to VAT on importation, regardless of whether such VAT is paid directly to the Bureau of Customs or to the Bureau of Internal Revenue

The effectivity of the provision under Section 7 of RR No. 9-2025, which requires RBEs using registered Cash Register Machines/Point-of-Sales (CRM/POS), Computerized Accounting System (CAS), Computerized Books of Accounts with Accounting Records, or other registered invoicing systems/software to reconfigure or rename their system by replacing the term “VAT/VAT Amount” in the breakdown of sales with “VAT on Local Sales,” or adding the same where “VAT/VAT Amount” is not applicable, is hereby extended until December 31, 2026. The Commissioner may further extend the deadline as may be necessary.