RMC No. 29-2009: Clarifies certain issues relative to the processing of claims for tax credit/refund

Key points

1. Proper cases. The Commissioner grants a refund or issues the TCC for creditable input taxes within 120 days from submission of complete documents. A proper case needs complete documents, books and records immediately available to the Revenue Officer, written reconciliation of discrepancies within 5 days from notification, and the claimant’s concurrence in the audit outcome shown by an Agreement Form.
2. Stopping and suspending the 120 days. The 120-day period stops from the date of notification if the taxpayer does not comply with these conditions. It is suspended when a question of law is referred to the Legal Division or Legal Service, whose opinion is due within 30 working days from the request. The taxpayer states in writing the date the books are available and the date documents are submitted.
3. VAT claims and denial. In a simultaneous audit of all tax liabilities and a VAT refund claim, the VAT claim is prioritized and not held pending the other audits. The claim is denied by a Denial Letter if the taxpayer fails to submit complete documents or comply with audit requirements after 3 notifications.
4. Proof of purchases. In lieu of the procedures in RMO No. 16-2007, the Revenue Officer may also require secondary evidence such as delivery receipts, check vouchers, and cancelled checks. The officer still checks the ITS Registration System that suppliers are legitimately registered.
5. Input tax on importation. Following RMO No. 22-2007, input tax on importation may be allowed even without Bureau of Customs data, if the claimant presents the original import entry declarations, the supplier’s sales invoice and delivery receipt, and the BOC official receipt for VAT and customs duties. The recommendation is subject to post-verification by the BOC before it releases its TCC.
6. Response times for officials. Requests for certifications and certified true copies are complied with within 5 working days from receipt, and requests for a legal resolution or opinion within 30 working days. Non-compliance is reported to the Assistant Commissioner, Inspection Service, for investigation and possible sanctions.

Who is affected

• Taxpayers claiming tax credit or refund
• Revenue Officers and processing offices

Deadlines and effectivity

• BIR action on proper cases: within 120 days from submission of complete documents
• Taxpayer reconciliation of discrepancies: within 5 days from notification
• Certifications and certified copies: within 5 working days
• Legal opinion: within 30 working days