RMO No. 22-2007: Prescribes additional procedures in the audit of input taxes claimed on importations

Key points

1. Big-ticket importations. These are importations by one importer where the aggregate VAT paid to the BOC before release of the goods is P 100,000.00 or more per quarter.
2. Verification by Revenue Officers. Officers must use data in the BIR Integrated Tax System and other BIR files to verify that claimed input tax credits are only those paid to the BOC. If no internal data exists, they must coordinate with BOC officers to get it.
3. Docket documents. Certified photocopies of import entry declarations, the seller’s sales invoice and delivery receipt, and the BOC official receipt on VAT and customs duties paid must form part of the tax docket.
4. Discrepancies. Any irreconcilable discrepancy between input taxes claimed in VAT returns and those paid to the BOC is treated as a disallowance, and deficiency VAT is assessed.
5. Annex B change. Annex B of RMO No. 53-98 gets additional items in the list of taxpayer requirements and reporting requirements for Revenue Officers in VAT audits.

Who is affected

• Importers with VAT paid to the BOC of P 100,000.00 or more per quarter
• Revenue Officers auditing VAT