BIR lessens requirements for VAT refunds

MANILA, Philippines — The Bureau of Internal Revenue (BIR) has reduced the documentary requirements for value-added tax (VAT) refund, in line with the CREATE MORE Act.

In its latest revenue memorandum circular, the BIR streamlined the documentary and processing requirements for VAT refund under the Tax Code.

For one, the BIR will now allow the submission of certified copies of invoices or receipts for sales and purchases to claim VAT refunds.

Previously, the revenue agency required original copies, which should be certified by an authorized official or employee of the corporate claimant, partnership or sole proprietorship, as the case may be.

The BIR likewise removed the need for proof of registration with the Securities and Exchange Commission or Department of Trade and Industry (DTI), whichever is applicable.

The bureau is also no longer requiring the copies of import entry and internal revenue declarations and the entry or single administrative document.

For claims with amortized input taxes from importation of capital goods, which are filed on a quarterly basis, previous certifications from the Bureau of Customs-Revenue Accounting Division can be submitted by taxpayers instead of certified copies.

This is provided that the original copy of certification has been submitted during the processing of the previous claim.

For claims covering taxable periods starting April this year or those that are already falling under the effectivity of CREARE MORE, BIR processing office for VAT refund claims of exporters shall verify the export sales of the taxpayer-claimant on the basis of the certification issued by the DTI-Export Marketing Bureau (EMB).

The BIR said the measure aims to prevent overlapping of validation efforts among government agencies.

As such, documents proving actual export of goods or services shall no longer be required since these will be submitted to the EMB for their scrutiny and issuance of a certification.

Further, sale of goods and services under the Tax Code have reverted to zero percent VAT from 12 percent, which entitles qualified taxpayers to avail themselves of refund.