THE Bureau of Internal Revenue (BIR) issued the revised guidelines and the mandatory requirements for the processing and grant of value-added tax (VAT) refund claims within the 90-day period under Section 112 of the Tax Code of 1997, as amended.
In a release, the Internal Revenue Bureau stated under Revenue Memorandum Circular (RMC) No. 47-2019 issued April 16, 2019, the timeframe to process and grant claims for VAT refund is 90 days from the date of submission of the official receipts or invoices and other supporting documents in accordance with Sections 112 (A) and (B) of the Tax Code, as amended, up to the release of the payment for the approved amount of the refund.
Taxpayers who can claim VAT refund are those engaged in sales of goods, properties or services which are zero-rated or effectively zero-rated.
Taxpayers whose registration was cancelled due to retirement from or cessation of business, or due to changes in or cessation of status under Sec. 106 (C) of the Tax Code are also eligible.
For direct exporters, application for VAT credit/refund claims (BIR Form No. 1914) shall be filed at the VAT Credit Audit Division of the BIR, said the circular.
For taxpayers whose VAT registration was cancelled and those engaged in other VAT zero-rated sales (e.g. renewable energy developers and those with indirect exports classified as effectively VAT zero-rated sales), the claim shall be filed at the Revenue District Office (RDO) or LT Audit Division having jurisdiction over the taxpayer-claimant.
The filing of the claim for VAT refund must be filed by the taxpayer “within two years from the date of issuance of the Tax Clearance by the BIR,” said the RMC signed by BIR Commissioner Caesar Dulay.
Moreover, upon filing, the claimant should have no outstanding liabilities. Outstanding VAT liabilities “may be deducted from the approved refund on the BIR portion,” it said.
If a VAT liability with the BIR would be present and the claim includes refund of input VAT on importations which necessitates endorsement to the Bureau of Customs (BOC) for processing of the payment, “the VAT liability with the BIR must first be settled before filing the application for VAT refund with the BIR.
The RMC stressed the need to ensure that documentary requirements for filing are complete and authentic.
“Failure on the part of the taxpayer-claimant to submit the complete documents in support of the claim shall result in non-acceptance of the applications,” it explained.
“Due to the very limited time for processing the VAT refunds, no additional document/s shall be subsequently requested/required from the taxpayer-claimant. Any unsupported claim shall be outrightly disallowed, resulting in full/partial denial of the claim,” said the circular.
The documents to be submitted by the taxpayer-claimant upon filing of the application for VAT refund, including the revised checklist of mandatory requirements, are specified in the circular.
The following documents should be submitted by the claimant within 30 days from date of filing: “Certification of VAT payment” from BOC RAD; consularized copy of the certificate of foreign registration/incorporation/association of the NRFC for purposes of the claims whose zero-rated sales are anchored under Section 108(B)(2) of the NIRC of 1997, as amended; and the certifications required for claims whose zero-rated sales are anchored under Section 108(B)(4) of the Tax Code of 1997, as amended, as required under Section II(9) of this Circular.
Non-submission of these requirements within the prescribed period may result in partial or full denial of the application, said the RMC.
“For VAT refund claims to be filed from June 1, 2019, “all documents as required in the Circular shall be submitted upon filing, it added.