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BOC allows cashing in of VAT tax refund credits

ID-10095441Philippine firms may now monetize the outstanding value-added tax (VAT) tax credit certificates (TCCs) they earned from the Bureau of Customs (BOC).

In a statement, the customs agency gave the go-signal, under Customs Memorandum Order 43-2015, to open the monetization program for VAT TCCs issued until December 2012. This is in line with Executive Order No. 68A-2014 amending EO No. 68-2012 that implements the government’s monetization program for outstanding TCCs.

The program aims to provide a mechanism for qualified VAT-registered persons to receive the cash equivalent of their outstanding VAT TCCs.

A TCC refers to the tariff duties and internal revenue taxes paid by a company for the raw materials, supplies, and semi-manufactured supplies used in export products. The TCC entitles the company to a tax refund as part of an incentives package for export-oriented firms.

Under the new guidelines, VAT TCC holders must apply with the Tax Credit Secretariat by filing a letter of application, submitting the original TCC, and filing an affidavit proving the authenticity of the TCC and the amount indicated on it.

An authorization from the TCC owner is needed in case the money will be claimed by a representative.

BOC noted though that “the release of the cash equivalent of import VAT TCCs and drawback TCCs shall be subject to availability of funds appropriated for the purpose.”

Image courtesy of David Castillo Dominici at FreeDigitalPhotos.net

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