RMC No. 17-2018: Amends certain provisions of RMC Nos. 89-2017 and 54-2014 on the processing of claims for issuance of Tax Refund/Tax Credit Certificate in relation to amendments made in the NIRC of 1997, as amended by RA No. 10963 (TRAIN Law)

Summary

RMC No. 17-2018 amends provisions of RMC Nos. 89-2017 and 54-2014 on processing claims for Tax Refund or Tax Credit Certificate, in light of the TRAIN Law (RA No. 10963) amendments to the NIRC.

Key points

1. 90-day period and TVNs. VAT refund claims are granted within ninety (90) days from submission of official receipts or invoices and supporting documents. The 90-day period starts on actual filing with complete documents and applies prospectively to claims filed upon effectivity of RA No. 10963. Tax Verification Notices are issued manually by the head of the processing office until the TVNMS is fully operational.
2. Findings and assessments. Processing claims is not an audit, so a Letter of Authority may be issued later. Findings on taxes other than VAT go to the investigating office, while VAT findings may lead to denial or assessment. A denial must be communicated in writing within the 90-day period.
3. Direct exporters. Claims are filed with and processed by the VAT Credit Audit Division, reviewed by the Tax Audit Review Division, and approved by amount. The ACIR-Assessment Service approves claims up to P50,000,000.00, the DCIR-Operations Group up to P150,000,000.00, and the Commissioner above P150,000,000.00.
4. Other claims. Other zero-rated taxpayers, indirect exporters and Sec. 112 (B) claims are processed by the RDO or LT Audit Division. They are approved by the Regional Director or ACIR-LTS irrespective of amount.
5. Documents and time frames. Applications need complete supporting documents and a notarized sworn certification. Missing vital documents mean the application is not accepted, and failing to present books and records is a ground for denial. Each office has set day limits that total 90 days.
6. Pending claims and penalty. Pending claims continue under RR No. 1-2017 and are acted on not later than June 30, 2018. Claims filed before the TRAIN Law are processed within the 120-day period clarified by RMC No. 54-2014. Officials who fail to act within 90 days are punishable under Section 269 of the Tax Code.

Who is affected

• Taxpayer-claimants of VAT refund or tax credit
• Direct exporters
• Processing, reviewing and approving BIR offices

Deadlines and effectivity

• VAT refund claims: ninety (90) days
• Pending claims acted on: not later than June 30, 2018
• Pre-TRAIN pending claims: 120-day period

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.