RR No. 2-2007: Amends certain provisions of RR No. 16-2005, otherwise known as the Consolidated Value-Added Tax Regulations of 2005

Key points

1. Carry-over of excess input tax. If input tax, including input tax carried over from the previous quarter, exceeds output tax, the excess is carried over to the succeeding quarter or quarters.
2. Zero-rated sales exception. Input tax attributable to zero-rated sales by a VAT-registered person may, at his option, be refunded or applied for a tax credit certificate. The certificate may be used to pay internal revenue taxes, subject to limits set by law and other implementing rules.
3. Coverage. The Regulations apply to quarterly VAT returns filed after the effectivity of Republic Act No. 9361, except returns covering taxable quarters ending earlier than December, 2006.

Who is affected

• VAT-registered persons with zero-rated sales

Deadlines and effectivity

• Effective immediately
• Applies to quarterly VAT returns filed after effectivity of Republic Act No. 9361, except quarters ending earlier than December, 2006