BIR Streamlines Requirements for VAT Refund Claims

The Bureau of Internal Revenue (BIR) has taken steps to facilitate tax processes in the Philippines by reducing the requirements for filing and processing of Value Added Tax (VAT) refund claims.

This comes as Commissioner Romeo D. Lumagui Jr. issued two new revenue issuances, effective July 1, 2023, to streamline the documentary requirements and procedures involved in VAT refund claims. The move aims to simplify the process and promote efficiency for taxpayers.

Under the newly issued Revenue Memorandum Circular (RMC) No. 71-2023 and Revenue Memorandum Order (RMO) No. 23-2023, the BIR has significantly reduced the number of documentary requirements for VAT refund claims. The previous 30 requirements have been streamlined to a minimum of 9 and a maximum of 17.

Moreover, taxpayers are now only required to submit the original copies of relevant documents, eliminating the need for soft copies of scanned sales invoices or official receipts.

In a notable shift, the BIR no longer requires the submission of documents that can be easily verified through existing tax systems or by accessing records from other BIR offices.

This streamlining of verification and processing procedures aims to expedite the VAT refund claims process.

Furthermore, the BIR has reduced the number of processing offices. Taxpayers under the Large Taxpayers Service (LTS) can now file their VAT refund claims at the LT VAT Audit Unit, while taxpayers falling under Revenue Regions with VAT Audit Section should file at the designated section, aiming to centralize the processing and ensure a more focused approach to handling VAT refund claims.

Commissioner Lumagui expressed his enthusiasm for these changes, describing them as a historic step towards ease of doing business in the country. He emphasized the BIR’s commitment to becoming a service-oriented agency, dedicated to supporting businesses and investments in the Philippines. (GFB)