RMC No. 96-2026: VAT Refunds for Export-Oriented Enterprises Awaiting DTI-EMB Certification

Revenue Memorandum Circular (RMC) No. 96-2026, issued by the Bureau of Internal Revenue (BIR) on September 7, 2026, lets a DTI-EMB registered Export-Oriented Enterprise (EOE) claim a VAT refund on input VAT from local purchases and importations attributable to qualified zero-rated sales, even for VAT incurred before it received its zero-rating certification — as long as that certification was issued within the transition period ending December 31, 2025, and the EOE met the 70% export threshold. The circular amends the transitory VAT refund guidelines set out in RMC No. 37-2025.

What Is RMC No. 96-2026 and Why Was It Issued? #

RMC No. 96-2026 is a BIR circular, signed by Commissioner Charlito Martin Mendoza, that amends the VAT refund guidelines under RMC No. 37-2025 for export-oriented enterprises registered with the DTI’s Export Marketing Bureau (DTI-EMB). It resolves a timing gap: EOEs incurred input VAT on local purchases and imports before receiving formal zero-rating certification, with no clear rule on whether that earlier VAT could still be refunded.

The gap exists because DTI-EMB certifications were rolled out on a rolling basis after the CREATE MORE Act (Republic Act No. 12066) introduced the 70% export-ratio certification framework. An EOE could be legitimately zero-rating its export sales under Section 106(A)(2) of the National Internal Revenue Code (NIRC) months before DTI-EMB formally certified it, leaving the input VAT on purchases made in that window in limbo. Commissioner Mendoza explained the reasoning behind the clarification directly:

“Export-oriented enterprises received their VAT zero-rating certifications on different dates during the transition period. We are clarifying how VAT incurred while these certifications were being processed should be treated so qualified export-oriented enterprises will have a clear basis for their refund claims.” — Commissioner Charlito Martin Mendoza, as quoted in BusinessMirror’s report on RMC No. 96-2026

Because the primary BIR PDF was not directly accessible for this article, this quotation is reproduced as reported by BusinessMirror, a secondary source, rather than pulled directly from the circular text.

Who Qualifies for the VAT Refund During the Transition Period? #

An EOE qualifies for the transitory VAT refund if it meets two conditions together: it satisfied the 70% export threshold for the relevant period, and its DTI-EMB VAT zero-rating certification was actually issued on or before December 31, 2025. Meeting the export ratio alone, without the certification landing inside that window, is not enough to unlock the refund.

The refund covers input VAT that meets all of the following:

• Passed on from local purchases or importations, not foreign purchases.
• Directly attributable to the EOE’s qualified zero-rated export sales.
• Incurred from November 28, 2024 onward.
• Incurred before the date the DTI-EMB certification was received.
• Tied to an EOE whose certification was issued no later than December 31, 2025.

One BIR-stated limit narrows the pool further: VAT that has already been reimbursed, credited, adjusted, recovered from suppliers, or otherwise utilized is excluded from a refund claim under RMC No. 96-2026, since allowing it would double-count VAT the enterprise already recovered another way, according to BusinessWorld’s coverage of the circular.

What Happens if an EOE Missed the Certification Window? #

An EOE that met the 70% export threshold but never obtained DTI-EMB certification within the transition period is not entitled to a VAT refund for the immediately succeeding year — the input VAT does not simply disappear, but it cannot be cashed out as a refund on that year’s return. This is the circular’s clearest penalty for missing the administrative deadline rather than the substantive export requirement.

The consolation is that the door isn’t fully closed:

Carry-forward relief is a real but slower remedy — it reduces future VAT payable rather than returning cash now, which matters for an EOE’s working capital planning if its certification arrived late.

Worked Example: Applying RMC No. 96-2026 to a Transitory-Period Refund #

Consider Metro Weave Exports Corp., a DTI-EMB registered garment exporter whose export sales made up 78% of its total output in 2024 — comfortably above the 70% threshold. Metro Weave applied for DTI-EMB certification early but only received it on August 15, 2025, well inside the transition period ending December 31, 2025. Between November 28, 2024 and August 15, 2025, Metro Weave paid ₱1,850,000 in input VAT on fabric, thread, and machinery-service purchases directly attributable to its zero-rated export orders.

Under RMC No. 96-2026, that ₱1,850,000 in pre-certification input VAT is refundable, because both conditions are met: Metro Weave cleared the 70% threshold, and its certification date falls inside the transition window. Metro Weave still has to substantiate the claim the normal way — sales invoices, purchase invoices/official receipts, and proof the purchases fed its zero-rated export line — and file within the BIR’s standard VAT refund process, including the 90-day processing period under Section 112(C) of the NIRC as amended by the TRAIN Law.

Now compare Dela Fuente Components, Inc., a metal-parts exporter that also cleared 78% export sales in 2024 but did not receive its DTI-EMB certification until March 2026 — after the transition period closed. Even though Dela Fuente met the same export ratio as Metro Weave, its late certification means the input VAT it incurred while waiting is not refundable for the immediately succeeding year under RMC No. 96-2026. Dela Fuente instead carries that unutilized input VAT forward against its future VAT liabilities.

How Does This Fit the Broader VAT Zero-Rating Framework for Exporters? #

RMC No. 96-2026 sits on top of the export-oriented enterprise framework the CREATE MORE Act and Revenue Regulations No. 10-2025 established, and it interacts with the BIR’s general refund-claim rules rather than replacing them. Understanding the underlying zero-rating and refund mechanics helps an EOE see where this circular’s transitory relief fits.

• The 70% export-ratio and DTI-EMB certification requirements that make the transitory refund possible are explained in VAT zero-rating for exporters under the EOPT Act.
• Once a transitory-period claim is filed, it still runs through the BIR’s standard 90-day VAT refund processing rule under Section 112(C) of the NIRC, including the risk-based classification and the 30-day Court of Tax Appeals window if the claim is denied or the deadline lapses.

An EOE with a late certification isn’t just losing a one-time refund — it’s also worth reviewing whether its zero-rating documentation for the affected period is otherwise sound, since a rejected transitory claim on paperwork grounds is different from being time-barred by the December 31, 2025 cutoff.

Summary #

RMC No. 96-2026 gives DTI-EMB registered export-oriented enterprises a narrow but real window to recover input VAT incurred before their zero-rating certification arrived, provided that certification landed on or before December 31, 2025 and the enterprise cleared the 70% export threshold. Miss the certification deadline and the refund for that year is off the table, though the input VAT survives as a carry-forward credit against future VAT liabilities. Because this circular is only days old, EOEs and their accountants should confirm their own certification date against the transition window before assuming either outcome, and should keep purchase and sales documentation for the November 28, 2024 onward period organized in case a refund claim is filed.

Frequently Asked Questions #

What is RMC No. 96-2026? #

RMC No. 96-2026, issued by the BIR on September 7, 2026, amends the VAT refund guidelines under RMC No. 37-2025 to clarify that DTI-EMB registered export-oriented enterprises (EOEs) may claim a VAT refund on input VAT from local purchases and importations attributable to qualified zero-rated sales incurred before their DTI-EMB zero-rating certification was issued, provided the certification was issued within the transition period ending December 31, 2025.

Which VAT can be refunded under RMC No. 96-2026? #

Input VAT passed on from local purchases and importations directly attributable to an EOE’s qualified zero-rated export sales, incurred from November 28, 2024 up to the date the enterprise received its DTI-EMB VAT zero-rating certification, can be claimed for refund, provided the certification was issued on or before December 31, 2025 and the EOE met the 70% export threshold.

What happens if an EOE never got DTI-EMB certification within the transition period? #

An EOE that met the 70% export threshold in the preceding taxable year but failed to secure its DTI-EMB VAT zero-rating certification within the transition period ending December 31, 2025 is not entitled to a VAT refund for the immediately succeeding year. Unutilized input VAT may still be carried forward and applied against future VAT liabilities, subject to existing rules.

Can VAT that has already been reimbursed or credited still be refunded? #

No. Under RMC No. 96-2026, VAT that has already been reimbursed, credited, adjusted, recovered from suppliers, or otherwise utilized may not be the subject of a separate VAT refund claim.

Does RMC No. 96-2026 replace RMC No. 37-2025? #

No. RMC No. 96-2026 amends and clarifies specific provisions of RMC No. 37-2025 on the transitory VAT refund treatment for export-oriented enterprises; it does not replace the entire circular.