Resolving uncertainty on B2B local sales

Clearing Up Uncertainty How Lifestyle Bloggers Professionals Can Improve Their Work Through Resolving B2B Local Sales Tax Incentives

As professionals in the lifestyle blogging industry, we understand the importance of staying ahead of the curve and adapting to changes in our field. The recent passage of the Create More Act (Republic Act 12066) in November 2024 is a significant development that has implications for our work.

In this blog post, we will explore how the enactment of the Create More Act can affect lifestyle bloggers professionals like ourselves, particularly when it comes to B2B local sales tax incentives. We will also discuss how resolving uncertainty around these tax incentives can improve our work and provide more opportunities for growth.

The Create More Act A Step Forward in Modernizing Philippine Taxation

The Create More Act aims to make the Philippines a more competitive player in the global market by introducing further reforms to the country's tax regime and fiscal incentive framework. The law introduces several key changes, including the creation of new business entities and the modification of existing ones.

One of the most significant implications of the Create More Act is its impact on B2B local sales tax incentives. Under the law, registered businesses with a minimum gross annual sales of P1 million are now required to register as VAT-registered enterprises. This change affects not only big businesses but also small and medium-sized enterprises (SMEs) like lifestyle bloggers professionals.

Uncertainty in B2B Local Sales Tax Incentives

The introduction of the Create More Act has brought about some uncertainty among taxpayers, particularly SMEs like lifestyle bloggers professionals. One of the biggest pain points is the emergence of input value-added tax (VAT) that cannot be refunded or used as a credit.

Under the Philippine tax system, VAT operates on a credit invoice mechanism where businesses collect VAT on their sales (output VAT) and incur VAT on their purchases (input VAT). The difference between output VAT and input VAT can either result in a tax liability or a refund. However, with the introduction of the Create More Act, SMEs like lifestyle bloggers professionals are now faced with unrecoverable costs that increase their effective tax burden and reduce liquidity.

The Need for Clarity

To resolve this uncertainty, it is essential to have clear guidance from the Bureau of Internal Revenue (BIR) on how the Create More Act applies to B2B local sales. The BIR's issuance of Revenue Regulation (RR) 09-2025 provided some clarity but also introduced new complexities.

The recent issuance of RR 01-2026 has narrowed the coverage of VAT-able transactions, aligning the implementing rules more closely with the statutory language of the Create More Act. This development provides greater clarity for businesses operating under the Create More framework and reduces the risk of unrecoverable input VAT.

Conclusion

As lifestyle bloggers professionals, it is essential to stay informed about changes in tax laws and regulations that can affect our work. The passage of the Create More Act has brought about significant changes in B2B local sales tax incentives, which can either positively or negatively impact our businesses.

By resolving uncertainty around these tax incentives, we can improve our work and provide more opportunities for growth. We believe that clearer guidance from the BIR, consistent application of Supreme Court and Court of Tax Appeals rulings, and simpler processes will help achieve this goal.

In conclusion, the Create More Act is a step forward in modernizing Philippine taxation, but it also adds complexity to taxpayers' lives. By staying informed and adapting to these changes, lifestyle bloggers professionals like ourselves can continue to thrive in an ever-changing business environment.

Keywords Create More Act, Republic Act 12066, Philippine tax regime, fiscal incentive framework, B2B local sales tax incentives, uncertainty, clarity, Bureau of Internal Revenue (BIR), Revenue Regulation (RR) 09-2025, RR 01-2026.

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Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.