Summary
RR No. 1-2017 prescribes the rules for processing Value-Added Tax (VAT) credit or refund applications filed under Section 112 of the Tax Code, as amended, before the effectivity of RMC No. 54-2014.
Key points
- Two-year period to apply. Under Section 112 (A), the claimant has two (2) years after the close of the taxable quarter of the sales to apply for a Tax Credit Certificate or refund. Complete supporting documents must be submitted before the administrative claim is barred by prescription.
- Completing documents and decision. Documents supporting the claim must be completed within the two-year period. The Commissioner or an authorized representative should decide within 120 days from submission of complete documents, or from the application date if no additional documents were submitted.
- Processing of pending claims. Claims pending before RMC No. 54-2014 took effect are processed on the documents the claimant submitted within the two-year period. The revenue official communicates the result in writing.
- Claims not covered. Not covered are claims filed beyond the two-year period, claims denied in writing, and claims fully or partially approved. Also not covered are claims already appealed to and pending with the Court of Tax Appeals, unless there is proof of withdrawal of the CTA case.
Who is affected
- Taxpayers with VAT credit or refund claims filed and pending before the effectivity of RMC No. 54-2014
Deadlines and effectivity
- Two (2) years after the close of the taxable quarter of the sales to apply
- Decision within 120 days from submission of complete documents or from filing
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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