RMO No. 23-2024: Prescribes the guidelines, policies and procedures in the implementation of the risk-based approach in the verification and processing of Value-Added Tax (VAT) refund claims, as introduced in Republic Act No. 11976 (Ease of Paying Taxes Act).

Key points

1. Policy basis. The risk-based verification policies under Section 112(A) of the Tax Code, as implemented under Section 3 of RR No. 5-2024, are strictly followed.
2. Risk classification. The assigned Revenue Officer evaluates the risk level using the claimant’s documents and BIR records and database. For claimants filing other than annually, such as quarterly, semestral or covering 3 quarters, the risk classification is made for every filing.
3. Data from other offices. BIR offices holding data on the risk factors in the matrix respond within five (5) days from receipt of the request, electronically through dedicated email addresses. Offices that miss the 5-day period and cause delay in the 90-day processing period are dealt with administratively under Section 269(J).
4. Working papers and past claims. Revenue Officers include in their working papers the risk matrix with justifications and follow the verification scope for the risk level under Section II (2). Processing offices check VAT refund claims processed in the immediately preceding six (6) years to support the classification.
5. Monthly report. Processing offices give the Department of Finance, BIR Management and the Commission on Audit a monthly report on VAT refund claims processed, with the risk level for each claimant.

Who is affected

• VAT refund claimants
• Revenue Officers and processing offices
• BIR offices holding risk data

Deadlines and effectivity

• Data requests answered within five (5) days
• 90-day period for processing VAT refund claims