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Exporters may avail of zero VAT by applying for an export-oriented enterprise (EOE) certification with the Department of Trade and Industry-Export Marketing Bureau
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The acceptance of application for EOE Certificate comes after the issuance of Joint Administrative Order No. 002-2025
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The JAO provides guidelines for implementing sections of the CREATE MORE Act relating to the certification of export-oriented enterprises with export sales of at least 70% of the total annual production of the preceding taxable year.
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The CREATE MORE Act stipulates the granting of tax incentives to support export-oriented enterprises, including VAT zero-rating on sales of goods to and sale of services performed by EOEs
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The EOE Certificate is distinct from the VAT-zero rating certification being issued by investment promotion agencies on the sale to registered business enterprises
Exporters may now avail of zero VAT by applying for an export-oriented enterprise (EOE) certification with the Department of Trade and Industry-Export Marketing Bureau (DTI-EMB).
The acceptance of application for EOE Certificate comes after the issuance of Joint Administrative Order (JAO) No. 002-2025 by the Department of Finance (DOF), Department of Trade and Industry, DTI-EMB, and DOF-Bureau of Customs (BOC).
The JAO, issued on April 7, 2025, provides guidelines for implementing sections of the CREATE MORE Act (Republic Act No. 12066) relating to the certification of export-oriented enterprises with export sales of at least 70% of the total annual production of the preceding taxable year.
CREATE MORE stands for Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy. It provides for the VAT zero-rating of sales of goods to and sale of services performed by EOEs, and VAT exemption of importation of goods by EOEs, provided that the export sales of EOS are at least 70% of total annual production for the preceding taxable year, and that such goods and services are directly attributable to the export activity of the EOE.
READ: Marcos signs CREATE MORE Act into law
The JAO noted that the EOE Certificate issued by DTI-EMB is distinct from the VAT-zero rating certification being issued by investment promotion agencies on the sale to registered business enterprises, which is covered under Title XIII of the Tax Code.
DTI-EMB will determine and certify the compliance with the 70% threshold, according to the JAO.
The EOE Certificate will be a requirement in the availment of the VAT-zero rating on local purchases or VAT exemption on importation.
For this purpose, the EOE should furnish a copy of the EOE Certificate to its local supplier prior to the transaction, and submit the same to BOC in case of importation.
DTI-EMB should evaluate and process the application within 20 working days from the acceptance of the application The period of processing should be without prejudice to any written clarification that DTI-EMB may address to the application and in such case, the 20 working days period may be stalled, as circumstances may warrant.
The EOE Certificate will be valid until the end of the applicable taxable year (calendar or fiscal) adopted by the EOE, unless earlier revoked.
Subsequent applications for EOE should be filed with DTI-EMB not earlier than 45 working days prior to the close of the taxable year of the EOE.
The issuance of the EOE Certificate is without prejudice to the conduct of post-audit investigation/verification by the Bureau of Internal Revenue.
The EOE Certificate may be revoked based on any of the following grounds:
- Failure to submit the certificate true copy of the audited annual financial statement on or before five working days after the last day of filing of income tax return with the BIR.
- Additional documents may be required by DTI-EMB to determine compliance; or
- Upon review of the submitted annual audited financial statement, it is determined that the EOE failed to meet the 70% export sales threshold.
Application and issuance of the EOE Certificate is free. EOEs may submit their application online through email at createmoreexports@dti.gov.ph or to the DTI-EMB office at 15th floor, Filinvest Building, 387 Sen. Gil Puyat Ave. Makati City.
