RMO No. 16-2014: Reiterates and prescribes certain policies relative to the VAT Audit Program

Summary

RMO No. 16-2014 reiterates and prescribes policies for the Value-Added Tax (VAT) Audit Program, including report deadlines and a minimum case output per Revenue Officer.

Key points

1. Report deadlines. Reports of investigation on VAT audit cases are due 60 days from issuance of the electronic Letter of Authority for one (1) quarter covered, and 90 days for two (2) quarters.
2. Progress report. A Revenue Officer who cannot meet the deadline prepares a progress report stating the reason for the delay. The VAT Audit Head notes it and gives a copy to the Regional Director before the 60 or 90 day period lapses.
3. Audit procedures. The Revenue Officer follows OM No. 13-06-001, doing only the audit procedures under Revenue Audit Memorandum Order No. 1-99 that fit the risks identified. An audit plan in the OM No. 13-06-001 format is completed for each case. Only the applicable and relevant documents under RMO No. 53-98 are attached to the docket, though the officer may apply the full issuances depending on the risks found.
4. Minimum output. Each Revenue Officer must complete and report at least thirty (30) VAT audit cases per year. For example, a VAT Audit Team of twenty (20) Revenue Officers, not counting Group Supervisors, must report at least six hundred (600) cases in 2014.

Who is affected

• Revenue Officers and VAT Audit Heads
• VAT Audit Teams

Deadlines and effectivity

• Report within 60 days for one quarter and 90 days for two quarters from the electronic Letter of Authority
• Minimum of thirty (30) cases per Revenue Officer per year
• Issued April 3, 2014

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