RMC No. 3-2019: Publishes the full text of Joint Circular No. 001-2018 of the DOF, DBM, BTr, BIR, BOC and COA re Value-Added Tax Refund Claims

Summary

RMC No. 3-2019 publishes the full text of Joint Circular No. 001-2018 of the DOF, DBM, BTr, BIR, BOC and COA on Value-Added Tax refund claims.

Key points

1. Refunds covered. VAT refunds issued solely by the BIR under Section 112 of the NIRC, Import VAT refunds issued solely by the BOC under Section 112, and VAT Drawback on Importations issued jointly by the BOC and the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center under RA No. 10863.
2. Trust Account funding. The BIR and BOC notify the BTr of the initial amount to be transferred from the General Fund to the Trust Account not later than January 15 each year. The final adjusted amount is due not later than the last day of February, equal to 5% of the preceding year’s total VAT collection.
3. Payment of claims. The BIR and BOC, with BTr concurrence, process claims and issue checks for the amount of the claim, net of any outstanding VAT delinquencies. They submit a monthly report of actual VAT refund claims and disbursements to BTr, DBM and DOF on or before the 8th day of the next month.
4. DBM and DOF roles. The DBM releases the Notice of Cash Allocation on receipt of complete documents. The DOF deducts 5% of the preceding year’s total VAT collection of the BIR and BOC from their revenue targets.

Who is affected

• VAT refund claimants
• BIR
• BOC

Deadlines and effectivity

• Initial amount notice: not later than January 15 each year
• Final adjusted amount: not later than the last day of February
• Monthly report: on or before the 8th day of the next month

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