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BIR clarifies effectivity of order cutting requirements for VAT refund claims

  • Bureau of Internal Revenue (BIR) Revenue Memorandum Order No. 47-2020 streamlined documentary requirements and procedures in filing and processing of VAT refund claims
  • According to BIR Revenue Memorandum Circular 14-2021, RMO 47-2020 took effect on January 19, 2021
  • RMO 47-2020 reduces the total documentary requirements from 39 to 30
  • The taxpayer-claimant availing of the VAT refund now only needs to show the original copies of the said documents, together with scanned copies stored in a memory device
  • The new order is in response to the appeal of taxpayer-claimants having difficulties complying with documentary requirements due to COVID-19

The Bureau of Internal Revenue (BIR) has clarified the effectivity date of an earlier order that streamlined documentary requirements and procedures in filing and processing of value-added tax (VAT) refund claims.

Under Revenue Memorandum Circular (RMC) 14-2021, BIR Revenue Memorandum Order (RMO) No. 47-2020 takes effect on January 19, 2021. RMO 47-2020 consolidates and updates guidelines and procedures in the processing of claims for VAT credit/refund, except those claims already with the Legal Group.

According to RMC 14-2021, VAT refund claims filed prior to January 19, 2021 should be filed and processed following guidelines and procedures set forth in RMC 47-2019 and RMO No. 25-2019.

VAT refund claims filed on or after January 19 should be filed and processed according to the guidelines and procedures under RMO 47-2020.

BIR said RMO No. 47-2020 was issued in response to appeal of taxpayer-claimants who are having difficulties complying with documentary requirements previously set under RMC No. 47-2019 due to the COVID-l9 pandemic. The RMO is also in compliance with Republic Act No. 11032, or the National Internal Revenue Code of 1997.

“Most notable under this RMO is the substantial reduction of the number of documentary requirements and the non-submission of the photocopies of sales invoices or receipts for both purchases and sales of goods or services,” BIR said in a statement.

Under RMO 47-2020, the taxpayer-claimant availing of the VAT refund is only required to show the original copies of the said documents, together with the corresponding scanned copies stored in a memory device.

Moreover, several documents that needed to be certified or consularized/apostilled are no longer required or are now optional on the part of the taxpayer-claimants.

From a total of 39 documentary requirements under RMC 47-2019, these have been reduced to 30 under RMO 47-2020.

The new order also directs all concerned offices to prioritize the processing of VAT credit/refund claims filed under Section 112 of the Tax Code, as amended, over other claims not requiring the immediate issuance of tax credit certificates (TCCs)/refund checks.

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