Documentary Requirements to be Submitted by Motor Vehicle Manufacturer/Assembler/Importer as Basis for the BIR to Determine Whether the Automobiles Subject to Excise Tax Exemption are Hybrid or Purely Electric Vehicles

The bureau has issued Revenue Regulations (RR) No. 001-2025 dated January 06, 2025, amending Section 9 of RR No. 25-2023 Relative to the Documentary Requirements to be Submitted by Motor Vehicle Manufacturer/Assembler/Importer as Basis for the BIR to Determine Whether the Automobiles Subject to Excise Tax Exemption are Hybrid or Purely Electric Vehicles pursuant to the Provisions of Republic Act No. 10963, Otherwise known as the "Tax Reform for Acceleration and Inclusion (TRAIN) Law.

SECTION 3. Further Amending Section (E) of RR No. 25-2003. Section 9 (E) of RR No. 25-203, as amended, it is further amended to read as follows:

"SEC. 9. TAX-EXEMPT REMOVALS OF AUTOMOBILES. The following removals of locally manufacture/assembled or release of imported automobiles from the place of production or for customs custody, relatively, are exempt from the payment of the appropriate excise taxes subject to certain conditions.

a. xxx

    xxx     xxx     xxx

E. Purely Electric Vehicles shall be exempt from the Excise Tax on Automobiles. Hybrid Vehicles shall be subject to Fifty Percent (50%%) of the applicable Excise Tax. Prior to the removal of the Automobiles from the Manufacturing Plant or Customs Custody the Commissioner of Internal Revenue (CIR), shall refer to the Electric Vehicle Recognition List Published by the Information and Classification for Battery Electric Vehicles (Purely Electric Vehicles/BEV), Plug-In Hybrid Electric Vehicles (PHEV), and Hybrid Electric Vehicles (HEV).

The BIR shall make a determination whether the Automobile is Exempt from Excise Tax or Subject to 50% Excise Tax, respectively, on the basis of the DOE's List of Recognized Electric Vehicles, published on its website, without prejudice to the BIR's Authority to conduct any Post-Verification Assessment of the Automobiles.

 For purposes of keeping up to date with the latest Publications of the List of recognized Electric Vehicles, the DOE shall furnish the BIR with a Certified True Copy of an updated List of recognized Electric Vehicles."

Please refer https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%201-2025.pdf of the full text of RR No. 001-2025