RMC No. 47-2019: Prescribes the revised guidelines and mandatory requirements for the processing and grant of Value-Added Tax refund claims within the 90-day period

Summary

RMC No. 47-2019 prescribes revised guidelines and mandatory requirements for processing and granting VAT refund claims within the 90-day period under Section 112 of the Tax Code of 1997, as amended. It amends certain provisions of RMC Nos. 5-2011 and 17-2018.

Key points

1. 90-day processing period. The period runs from submission of the official receipts or invoices and other supporting documents until release of payment of the approved refund. Claims processed under the jurisdiction of the Legal Service are excluded.
2. Where BIR Form No. 1914 is filed. The VAT Credit Audit Division receives claims of direct exporters under Section 112(A), regardless of the percentage of export sales to total sales. The RDO or LT Audit Division with jurisdiction receives claims of other VAT zero-rated sellers under Section 112(A) and claims of taxpayers whose VAT registration was cancelled under Section 112(B).
3. Cancelled VAT registration. Subject to Sec. 4.112-1(b) of RR No. 13-2018, the claim is filed with the BIR office having jurisdiction within two (2) years from issuance of the Tax Clearance. This applies to cancellation due to retirement from or cessation of business, or changes in or cessation of status.
4. No outstanding tax liabilities. The claimant must have no outstanding tax liabilities when filing. Outstanding VAT liability may be deducted from the approved refund on the BIR portion, but if the claim includes input VAT on importations needing endorsement to the Bureau of Customs, the VAT liability must be settled before filing.
5. Complete documents and authorized signatory. Incomplete documents mean the application is not accepted, no extra documents are requested later, and unsupported claims are disallowed outright, fully or partly. The signer must be authorized through a notarized Secretary’s Certificate or Special Power of Attorney, presented with one valid government-issued ID.
6. Transitory provisions. Claimants submit within thirty (30) days from filing a Certification of VAT Payment from BOC RAD, a consularized certificate of foreign registration of the NRFC for claims under Section 108(B)(2), and the certifications required for claims under Section 108(B)(4). Non-submission may cause partial or full denial.

Who is affected

• VAT refund claimants
• Direct exporters
• Taxpayers with cancelled VAT registration

Deadlines and effectivity

• Issued April 16, 2019
• Processing period: 90 days from submission of supporting documents
• Cancelled VAT registration claims: within two (2) years from issuance of the Tax Clearance
• Transitory documents due within thirty (30) days from filing; all documents upon filing for claims filed on June 1, 2019 and thereafter

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