RMC No. 71-2023: Provides streamlined guidelines and mandatory requirements for claims of Value-Added Tax (VAT) Credit/Refund except those under the authority and jurisdiction of the Legal Group

Summary

RMC No. 71-2023 gives uniform guidelines and revised mandatory documentary requirements for processing VAT credit/refund claims under Section 112 of the Tax Code, except claims under the Legal Group. It covers claims filed starting July 1, 2023.

Key points

1. Time frame. A VAT refund claim is processed and granted within ninety (90) days from submission of the official receipts or invoices and other supporting documents, up to release of payment. A claim filed beyond the 2-year prescriptive period is accepted, but the processing office recommends outright denial.
2. Where to file BIR Form No. 1914. Claims of direct exporters go to the VAT Credit Audit Division in the National Office. Claims of those in other VAT zero-rated activities, with cancelled VAT registration, or recovering erroneously collected VAT go to the VAT Audit Section, the RDO if there is no VATAS, or the LTS VAT Audit Unit. Claims of those whose registration was cancelled due to retirement or cessation are filed within two (2) years from the tax clearance date.
3. Complete documents and authority. Only applications with complete documents in the Checklist of Requirements (Annexes A.1, A.2 or A.3) are received and processed. The signer needs a notarized Secretary’s Certificate or Special Power of Attorney and one valid government-issued ID. Documents obtainable from BIR records are no longer required, though the taxpayer may submit copies.
4. Originals and importations. Original invoices and receipts are verified by the Revenue Officers and forwarded to the COA if the refund is approved. For claims denied in full, they are returned after stamping VAT Credit/Refund Processed. Claims on imported input VAT need a VAT Payment Certification from the BOC Revenue Accounting Division with supporting import documents.
5. Capital goods over ₱1,000,000.00. For input VAT amortized on purchases over ₱ 1,000,000.00 a month, current claims need sales invoices or official receipts and proof of payment. For deferred input VAT from earlier periods, a certified amortization schedule may replace resubmission if the documents were previously verified. Purchases or importations from January 1, 2022 are not amortized and the input VAT is claimed in the month of purchase.
6. Delinquent liabilities and cooperation. If the claimant has final and executory tax liabilities shown by a Delinquency Verification Certificate, the approved refund is referred for garnishment. A notarized sworn certification on completeness of documents is attached, and failure to present books of accounts or requested documents may lead to full or partial denial.

Who is affected

• Taxpayer-claimants of VAT credit/refund under Section 112
• Direct exporters
• Processing offices of the BIR

Deadlines and effectivity

• Applies to claims filed starting July 1, 2023
• Processing within ninety (90) days from submission of supporting documents
• Two (2) year prescriptive period for filing under Section 112

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