REVENUE MEMORANDUM CIRCULAR NO. 9-2004 issued on February 20, 2004 provides polices and guidelines relative to the business tax applicable to banks and nonbank financial intermediaries performing quasi-banking functions and other non-bank financial intermediaries, as a result of the enactment and effectivity of Republic Act (RA) No. 9238. Said RA amended certain provisions of the National Internal Revenue Code of 1997 by excluding several services from the coverage of the Value-Added Tax (VAT) and re-imposing the Gross Receipts Tax on banks and non-bank financial intermediaries performing quasi-banking functions and other non-bank financial intermediaries beginning January 1, 2004.

     Since RA No. 9238 was only published in a newspaper of general circulation on February 16, 2004, banks, non-bank financial intermediaries engaged in quasi-banking functions, and non-bank financial intermediaries have issued VAT receipts for services it had rendered prior to February 16, 2004. As a result, said institutions will have to file a VAT return for said services rendered, and are liable to remit the output VAT thereon to the Bureau of Internal Revenue (BIR).

     However, recognizing that banks and non-bank financial intermediaries have issued VAT-invoice at the time the RA has not yet been published, banks and non-bank financial intermediaries may be provided with an opportunity to refund the VAT it has paid and remitted to the BIR for the said transactions.