RMC No. 64-2019: Clarifies the issuance of Delinquency Verification Certificate for claims for Value-Added Tax Credit/Refund

Key points

1. No outstanding liabilities. RMC No. 47-2019 requires that claimants have no outstanding tax liabilities as defined in RMO No. 11-2014 when filing. These are Accounts Receivable/Delinquent Accounts, meaning tax due that was not paid on time from self-assessed liabilities or from deficiency assessments that became final and executory.
2. Self-assessed liabilities. These include a dishonored check used to pay tax, tax due per return that was not paid on time, and non-payment of the 2nd installment by individuals who chose installment payment of income tax.
3. Final and executory assessments. An assessment becomes final and executory on failures such as no request for reinvestigation or reconsideration within thirty (30) days from receipt of the FAN, or no supporting documents within sixty (60) days from filing the request. It also becomes final if there is no CTA appeal within thirty (30) days from the denial decision or from the lapse of one hundred eighty (180) days, no appeal of the CTA decision to the higher court, or a final CTA or Supreme Court decision for the BIR.
4. Not counted as delinquent. Open stop-filer cases and deficiency assessments that were timely protested, under reconsideration or reinvestigation, or pending appeal are not AR/DA. They do not prevent processing of the VAT refund.
5. Issuing offices and format. Only the offices named in the Circular issue the DVC: the Regional Office Collection Division and ARMD for non-large taxpayers, and the LT Collection Enforcement Division, LTD-Cebu or Davao and ARMD for large taxpayers. They must use the format in Annex A and no other.
6. Validity and wording. The DVC is valid for six (6) months from date of issue and cannot be used on sales or transfers of real properties. If there is no outstanding liability, or the liability is under protest or appeal, or there are open stop-filer cases, the HAS NO DELINQUENT TAX LIABILITY box is checked and no case details are stated.

Who is affected

• VAT credit or refund claimants
• Non-large and large taxpayers

Deadlines and effectivity

• DVC valid for six (6) months from date of issue