RMO No. 41-2020: Clarifies the policies and procedures governing the processing of claims for Value-Added Tax (VAT) refund of Resident Foreign Missions, their qualified personnel and the personnel’s dependents, amending RMO No. 10-2019 and other pertinent revenue issuances

Key points

1. VAT Certificate or ID honored. Business establishments must honor the VAT Certificate or VAT Identification Card issued by the BIR to RFMs, their qualified personnel and dependents at the point of sale, including online purchases, and give the VAT exemption privileges under paragraph V(B) of RMO No. 10-2019.
2. Receipt and invoice content. Since RFMs are not VAT-registered, the invoice or official receipt need not show the purchaser’s name, address and TIN. For cash transactions, it must show at least the purchaser’s name, enough to establish identity, and a tape receipt showing the name through a membership or loyalty card is also sufficient.
3. Credit and cash purchases. For credit transactions, a tape receipt from a BIR-registered CRM or POS that cannot encode purchaser details suffices if supported by the credit card slip and the bank statement of account. For cash purchases with such a CRM or POS, the establishment issues a manual receipt bearing the purchaser’s information.
4. Utility charges. For utilities of leased premises, the claimant presents an official receipt in the claimant’s name. For payment by credit card or online platforms such as GCash and PayMaya, the proof of payment and statement of account, if applicable, suffice.
5. Sanctions. Revenue officials who fail to act on claims within the prescribed periods face administrative disciplinary action. An establishment that fails to issue a manual receipt on request is treated as refusing to issue receipts or invoices, punishable under Section 264 of the Tax Code.
6. Pending and previously denied claims. Pending applications follow the procedures in this Order. Claims denied for invoices lacking the taxpayer’s name but supported by credit card slips or statements of account may be re-filed within the 2-year prescriptive period under Section 229 of the 1997 Tax Code, as amended.

Who is affected

• Resident Foreign Missions, their qualified personnel and dependents
• Business establishments
• Revenue officials handling VAT refund claims

Deadlines and effectivity

• Re-filing of previously denied claims within the 2-year prescriptive period under Section 229