RMO No. 25-2019: Prescribes the policies and procedures to implement the ninety (90)-day period to process and grant claims for Value-Added Tax (VAT) Refund/Credit pursuant to Section 112 of the Tax Code

Key points

1. Receiving claims. The VAT Credit Audit Division, Revenue District Offices and Large Taxpayers Audit Division receive the claims. The assigned Revenue Officer pre-checks the application and documents against the Checklist of Requirements in Annex A.1 of RMC No. 47-2019.
2. Claims not accepted. Applications are not accepted if the claimant has outstanding delinquent tax liabilities under Section II(1) of RMO No. 11-2014, unless the liability is solely VAT. If a VAT liability exists and the claim includes or is solely on importations needing endorsement to the Bureau of Customs, the claimant is told to settle the VAT liability first.
3. Verification. The head of the processing office issues Tax Verification Notices, manually until the monitoring and case management systems are fully operational. The Revenue Officer prepares a memorandum report recommending approval or disapproval, and for Section 112(B) claims verification is limited to proofs of input VAT accumulated as of the change in or cessation of status under Sec. 106(C).
4. Original documents. The Revenue Officer validates photocopies against the originals and stamps VAT Refund/Credit Claimed on them. If bringing originals is not logistically possible, stamping may be done at the claimant’s registered address with a permit approved by the head of the processing office.
5. Time frames. The total is 75 days from receipt of the application for VCAD, LTS and Regional claims. Payment is released within fifteen (15) days after receipt of the Disbursement Voucher and Budget Utilization Request and Status and the refund docket, within the 90-day period.
6. Penalties and reports. Officials who fail to act within the time frame are punishable under Section 269 of the Tax Code, as amended. The BIR sends the Bureau of Treasury, DBM and Department of Finance a monthly report of VAT claims and disbursements on or before the 8th day of the ensuing month.

Who is affected

• VAT refund or credit claimants
• BIR officials and employees processing the claims

Deadlines and effectivity

• Issued May 16, 2019
• Processing, review and approval: 75 days from receipt of application
• Payment release within fifteen (15) days, within the ninety (90)-day period
• Monthly report: on or before the 8th day of the ensuing month