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Starting July 1, VAT refund claimants need to comply with just a minimum of 9 to a maximum of as 17 requirements instead of 30
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The Bureau of Internal Revenue has issued two circulars that aim to cut documentary requirements and streamline VAT refund procedures
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BIR says relaxing the claim procedure is in compliance with the Ease of Doing Business Law
The Bureau of Internal Revenue (BIR) has cut requirements for value-added tax (VAT) refund, from 30 to a minimum of nine to a maximum of 17.
This follows recent issuances by BIR Commissioner Romeo Lumagui that aim to lessen documentary requirements and streamline procedures in filing and processing of VAT refund claims.
Revenue Memorandum Circular 71-2023 and Revenue Memorandum Order (RMO) 23-2023 cut the number of documentary requirements drastically, and removed the submission of soft copies to support scanned sales invoices or official receipts of purchases and sales of goods or services.
Lumagui said the BIR is easing the VAT refund process in response to taxpayer-claimants’ clamor after encountering difficulties in complying with the existing documentary requirements.
Relaxing the claim procedure is also in compliance with the Ease of Doing Business Law, which mandates government agencies to streamline their current systems and service procedures. The move aims as well to facilitate all government transactions promptly and efficiently.
“Cutting the BIR requirements of VAT refund to half is a historic step towards [achieving] ease of doing business,” said Lumagui.
“We hope that with this, taxpayers will realize that the BIR is now a service-oriented agency, not merely a goal-oriented one. We will continue to look for ways that will make the Philippines a haven for businesses and investments,” Lumagui said.
The BIR will do away with requiring taxpayers to submit soft copies of the scanned sales invoices or official receipts of both purchases and sales of goods or services. The VAT refund claimants will only be required, instead, to submit original copies of those documents.
The bureau said documents that can be verified from BIR records either via the existing information tax systems or access to records at other revenue offices will no longer be required starting July 1.
The BIR also committed to simplify verification and processing of the VAT refund claims.
VAT is levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the country.
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