BIR Update: Changes in the Documentary Requirements for Application for Refund of Unutilized Input VAT - Atty. Gilbert P. Aslor - Licensed Tax and Corporate Lawyer in Makati, Philippines

BIR Update: Changes in the Documentary Requirements for Application for Refund of Unutilized Input VAT

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) No. 47-2020, effective January 19, 2021, streamlining the documentary requirements for the filing and processing of unutilized input VAT arising from zero-rated or effectively zero-rated sales, or whose registration has been canceled due to retirement or cessation of business.

The most notable changes in the said RMO are the following:

Overall reduction of the number of documentary requirements from the old requirement (RMO 47-2019) of 39 documents to 30 documents under RMO 47-2020;

Photocopy of the purchase documents from local suppliers is no longer required to be certified by the issuing agency of person. Instead, the original documents and softcopy thereof will be submitted when the application is filed. The original documents shall be returned to the taxpayer after it is stamped with “VAT Refund Claimed” after verification while the processing office will retain the soft copies for future reference; and

Photocopy of the sales documents from local suppliers is no longer required to be certified by the issuing agency of person. Instead, the original documents and softcopy thereof will be submitted when the application is filed. After verification, the original documents shall be returned to the taxpayer after it is stamped with “VAT Refund Claimed.” The processing office will retain the soft copies for future reference.

Please also note that BIR issued Revenue Memorandum Circular (RMC) No. 14-2021, dated January 12, 2021, clarifying that RMO No. 47-2020 shall be the governing issuance for refund claims filed on or after January 19, 2021.

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