Revenue Memorandum Circular (RMC) 24-2022, which aims to clarify Revenue Regulations (RR) 21-2021, states that the provisions of the Corporate Recovery and Tax Incentives for Enterprise Act (CREATE) and its implementing rules, as it provides the zero-rating on Value Added Tax (VAT) on local purchases, shall only apply to sales of goods and services directly and exclusively used in the registered project or activity of a registered export enterprise (REE).
Source: philstar.com