VAT Zero-Rating
The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act (RA No. 11534) has been updated with the passage of the CREATE MORE Act (RA No. 12066), which took effect in November 2024. Its amendments were implemented through BIR No. 9-2025, effective March 2025.
To help our business customers understand these changes, we’ve prepared a set of Frequently Asked Questions (FAQs) on the revised requirements and processes for customers with VAT zero-rating.
1. How are the VAT zero-rating rules under the CREATE MORE Act different from the previous rules?
CREATE MORE (RA No. 12066) introduces key improvements to the VAT zero-rating rules compared to the original CREATE Act (RA No. 11534). Here's a side-by-side comparison:
| Provisions | CREATE Act | CREATE MORE Act |
|---|---|---|
| Entities Covered | Qualified Registered Business Enterprises (RBEs) | Qualified Registered Business Enterprises (RBEs) and Export-Oriented Enterprises (EOEs) |
| Scope of Zero-Rated Local Purchases | Direct and exclusively used | Directly attributable – including incidental services like janitorial, HR, legal, marketing, etc. |
| Documentary Requirements |
1. BIR Certificate of Registration 2. Investment Promotion Agency (IPA) Certificate of Registration 3. Investment Promotion Agency (IPA) VAT Certification for 2025 4. Sworn affidavit 5. Other supporting documents, if any |
For RBEs: Certified True Copy of IPA VAT zero-rating certificate For EOEs: Certified True Copy of VAT zero-rating certificate issued by the Export Marketing Bureau of the Department of Trade and Industry |
2. My business/company is registered with an IPA and is considered a Registered Business Enterprise (RBE) or an Export-Oriented Enterprise (EOE). How do I get a VAT zero-rating on my Meralco bill?
If your business is registered with an IPA and qualifies as a Registered Business Enterprise (RBE) or is an Export-Oriented Enterprise (EOE), you may apply for VAT zero-rating by submitting the appropriate certification:
- RBEs must submit a certified true copy of the VAT Zero-Rating Certificate issued by the concerned IPA.
- EOEs must submit a certified true copy of the VAT Zero-Rating Certificate issued by the Export Marketing Bureau of the DTI.
Please submit the certification through the following:
| Customer Type | Instructions |
|---|---|
|
For Biz Customers (5 – 499 kW) |
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For E&N Customers (500 kW and above) |
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Once the required documents are provided to Meralco, we will review whether these are complete and sufficient. You may check your next billing statement to confirm the implementation of the VAT zero-rating. For any further inquiries, please contact your Biz Customer Service Engineer or Enterprise Relationship Manager.
3. The electricity usage of our business/company is not exclusively for export operations as we have other offices/units that are not directly involved in production. Can it still qualify for VAT zero-rating under CREATE MORE, and how does the ‘directly attributable’ rule apply?
Yes, it can still qualify. The term “directly attributable” introduced by the CREATE MORE Act refers to goods and services that are incidental to and reasonably necessary for the export activity of the export-oriented enterprise. Such services include janitorial, security, financial consultancy, marketing and promotion services, and services rendered for administrative operations (e.g., human resources, legal, and accounting).
4. What if I have multiple services under 1 account, do I need to submit the requirement per service ID No.?
No, you only need to submit once. Please reach out to your Biz Customer Service Engineer (for Biz customers) or Enterprise Relationship Manager (for E&N customers) to provide the list of services covered by the VAT zero-rating certificate you submitted.
5. Can we send the document via delivery service (Grab, Lalamove, LBC, etc.)?
Yes, once the document has been verified by a Biz Customer Service Engineer (for Biz customers) or Enterprise Relationship Manager (for E&N customers), you may:
- Send the certified true copy of the IPA/DTI-EMB VAT zero-rating certificate via delivery services (Grab, Lalamove, LBC, etc.) to the following addresses. Please instruct the courier to leave the documents in the Meralco Lopez building lobby.
| Customer Type | Address |
|---|---|
| For Biz Customers (5 – 499 kW) | Meralco Biz, 10/F Lopez Building, Meralco Center, Ortigas Center, Ortigas Ave., Pasig City. |
| For E&N Customers (500 kW and above) | Enterprise and National Government Group, 10/F Lopez Building, Meralco Center, Ortigas Ave., Pasig City |
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Personally bring the certified true copy of the IPA/DTI-EMB VAT zero-rating certificate to the same addresses above.
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You may also coordinate with your assigned Customer Service Engineer (CSE) or Enterprise Relationship Manager (RM) if you need assistance with the submission.
6. Can we submit the requirements at the nearest Meralco Business Center?
No, the requirements must be submitted to the address below:
| Customer Type | Address |
|---|---|
| For Biz Customers (5 – 499 kW) | Meralco Biz, 10/F Lopez Building, Meralco Center, Ortigas Center, Ortigas Ave., Pasig City. |
| For E&N Customers (500 kW and above) | Enterprise and National Government Group, 10/F Lopez Building, Meralco Center, Ortigas Ave., Pasig City |
7. How often and when do I need to submit my VAT zero-rating certification to Meralco?
As the IPA VAT zero-rating certification or the DTI-EMB VAT zero-rating certificate only covers one (1) year, the VAT zero-rating certification must be submitted annually.
For example, if the IPA VAT zero-rating certificate or DTI-EMB VAT zero-rating certificate covers the period January 1, 2027 to December 31, 2027, the said certificate must be submitted to Meralco before January 1, 2027.
8. Our business/company enjoys VAT zero-rating on its purchases by virtue of special laws. Is my business/company affected by the changes brought by CREATE MORE?
No, sales to enterprises covered by special laws such as renewable energy developers under R.A. No. 9513 (Renewable Energy Act of 2008, International Rice Research Institute, Asian Development Bank, etc.) or embassies are still subject to 0% VAT in accordance with the respective special laws.