THERE have been so many discussions on the promulgation of Revenue Regulations 9-2021 (RR 9-2021) that implemented certain amendments introduced by Republic Act (RA) 10963 or the "Tax Reform for Acceleration and Inclusion" (Train) Law to Sections 106(A)(2)(a) and 108(B) of the National Internal Revenue Code of 1997 as amended (Tax Code).
RR 9-2021 categorically states that since conditions prescribed by the Train Law have been satisfied, certain transactions previously taxed at zero percent value-added tax (VAT) are now subject to 12-percent VAT. These transactions, referred to as "indirect exports," generally involve the sales of raw and packaging materials to export-oriented enterprises or the provision of processing and manufacturing services to them.
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