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  • Special InTAX: May 2019 Issue 1 | Vol. 3

Special InTAX: May 2019 Issue 1 | Vol. 3

Special InTAX: May 2019 Issue 1 | Vol. 3

InTAX is an official publication of Tax Group of R.G. Manabat & Co.

intax

Bureau of Internal Revenue

 

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (“RMO”) No. 25-2019, received 16 May 2019, prescribing the Policies and Procedures to Implement the Ninety (90)-Day Period to Process and Grant Claims for Value Added Tax (VAT) Refund / Credit. This is in connection with Section 112 of the NIRC of 1997, as amended (Tax Code).

1.     Receipt of Claims for VAT Refund / Credit

The following processing offices shall receive claims for VAT refund / credit:

   Processing Office

(Recipient) 

   Taxpayer

     (Claimant) 

VAT Credit Audit Division (VCAD) Direct Exporters
Revenue District Offices (RDOs) Other VAT Zero-Rated Taxpayers within its jurisdiction
Taxpayers whose VAT Registration has been Cancelled [Section 112(B) of the Tax Code] within its jurisdiction
Large Taxpayers Audit Division (LTAD) Other VAT Zero-Rated Taxpayers within its jurisdiction
Taxpayers whose VAT Registration has been Cancelled [Section 112(B) of the Tax Code] within its jurisdiction

Kindly note that applications for VAT refund/credit where the taxpayer-claimant has outstanding tax delinquencies shall not be accepted, unless the tax liability pertains solely to VAT as provided under Revenue Memorandum Circular No. 03-2019.

Outstanding Tax Delinquencies   Action  
Pertains solely to VAT

a.     Prepare a request for the computation of the total tax liability up to the 90th day of processing of the claim;

b.     Prepare a separate Tax Credit Certificate (TCC) in favor of the taxpayer-claimant with a notation that the same shall be used to pay the VAT liability computed. The memorandum report shall state the amount of TCC to be deducted and the amount to be processed for payment.

Pertains solely to VAT and claim for refund includes input VAT on importations RO/s shall inform claimant that the VAT liability must be settled first before filing the application for VAT refund/credit
Includes/pertains to taxes other than VAT Not accepted

2.     Processing and Verification of Claims

 

Processing

 

The head of the processing office shall issue Tax Verification Notices (TVNs), manually until the Tax Verification Notice Monitoring System (TVNMS) and the Case Management System (CMS) are fully operational.

 

The assigned RO/s shall verify the documents submitted and this would not be construed as an audit/investigation. The assigned RO/s would also prepare a memorandum report recommending the approval / disapproval of the claim, to be reviewed by the head of the processing office and endorsed to the following reviewing offices for further review:

Filed With   Reviewing Office   
VCAD Tax Audit Review Division (TARD)
LTS Office of the Head Revenue Executive Assistant
RDOs Assessment Division of the Respective Revenue Region (RR) where taxpayer is registered

For claims filed with VCAD, the assigned RO/s shall:

•      Recommend deduction from claim such determinable amount that may lead to the imposition of output VAT; or

•      Refer to the LTAD or RDO having jurisdiction over the taxpayer for further investigation on findings regarding deficiency in other internal revenue taxes other than VAT

 

Validation

The assigned RO/s shall validate the photocopies of the invoices / receipts for sales and purchases from the original copies presented by the claimant, and shall return after stamping “VAT Refund / Credit Claimed” thereto.

The processing office shall validate the “VAT Payment Certification” issued by the Revenue Accounting Division (RAD) of the Bureau of Customs (BOC), including the Import Entry and Internal Revenue Declarations (IERD) and / or Single Administrative Document (SAD), Statement of Settlement of Duties and Taxes (SSDT) for claims involving input VAT on importation.

 

Submission

The BOC-RAD shall send the scanned copy of the “VAT Payment Certification” to the processing office of the BIR, through their respective dedicated email addresses.

The assigned RO/s shall prepare, submit and / or attach the reports / schedules and documents prescribed in Annexes “A” to “E” of the RMO.

      Disbursement Voucher (DV) and Budget Utilization Request and Status (BURS)

    Filed With    Responsible Office   
Preparation of DV and BURS VCAD The final memorandum report, DV and BURS are prepared by the reviewing office, stating their concurrence with the recommendation of the processing office
RDOs
LTS DV and BURS are prepared by the processing office, subject to changes by the reviewing office
Processing of Payment After Approval of the Claim VCAD Assessment Service shall endorse the approved VAT refund to the Finance Service
RDOs Office of the Regional Director shall transmit the approved VAT refund to the Finance Division
LTS Office of the ACIR, LTS shall endorse the approved VAT refund to the Finance Service

Time Frame for Processing, Reviewing and Approving Offices

The time frame as tabulated in the RMO shall be strictly adhered to by the processing, reviewing and approving offices, with a maximum of seventy-five (75) days from receipt of application.

The following revenue officials shall approve the recommendation for approval / disapproval of VAT claims:

        Approving Revenue Official   
VCAD Claims Claims not more than Php50,000,000.00 ACIR - AS

Claims More than Php50,000,000.00

up to Php150,000,000.00

DCIR - OG
Claims not more than Php150,000,000.00 CIR
LTS Claims Local Purchases Only ACIR - LTS
Includes Importation CIR
Regional Claims   Regional Director

Kindly note that result of the evaluation of the VAT refund / credit claim shall be communicated in writing to the taxpayer immediately after approval of the report by the designated approving BIR Official.

 

1.     Processing of Payment for the Approved VAT Refund Claims

The processing offices as tabulated in the RMO shall process and release the payment for the approved VAT refund within fifteen (15) days after receipt of the DV and BURS and VAT refund docket and within the ninety (90)-day period required by law.

Full text of the issuance together with the following annexes are attached for your reference.

Annex   Description   
Annex “A” Documents Required to be Prepared / Attached to the VAT Refund / Credit Case Docket
Annex “B” VAT Refund / Credit Notice on Local Purchases
Annex “C” VAT Refund / Credit Notice on Local Purchases and Importations
Annex “D” Authority to Issue VAT Refund / Tax Credit Certificate
Annex “E” VAT Refund / Credit Covering Sheet

Attachments:

Revenue Memorandum Order No. 25-2019

Annex E - VAT Refund/Credit Covering Sheet

Annex D - Authority to Issue VAT Refund/Tax Credit Certificate

Annex C - VAT Refund Notice Local Purchases and Importations

Annex B - VAT Refund Notice Local Purchases

Annex A - Attachment to a VAT Refund Docket

DISCLAIMER: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although R.G. Manabat & Co. endeavors to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

For any queries, you may contact any member of the InTAX Editorial Board or send your questions to ph-inquiry@kpmg.com.

© 2023 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

 

For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.

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© 2023 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

 

For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.

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