RMC No. 50-2002: Prohibits the filing of multiple claims for credit of input tax attributable to zero-rated sales

Key points

1. Rule on reducing input tax. Under Section 110(C) of the Tax Code, the excess input tax carried over plus the creditable input tax for the period is reduced by claims for refund or tax credit for value-added tax and other adjustments. These adjustments include purchase returns or allowances and input tax attributable to exempt sale.
2. Claims counted. The claim for tax credit includes claims filed with the BIR and with other government agencies, such as the Board of Investments and the Bureau of Customs.
3. Penalty. A taxpayer found to have made double or multiple claims for tax credit is subject to civil and/or criminal actions.

Who is affected

• VAT-registered persons with input tax attributable to zero-rated sales