BIR streamlines VAT refund documentary requirements

Photo courtesy: BIR

By Anna Leah Gonzales | Philippine News Agency

The Bureau of Internal Revenue (BIR) issued a memorandum circular streamlining the documentary requirements for value added tax (VAT) refund claims under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

In a statement issued by the agency on Wednesday, May 21, the BIR said Revenue Memorandum Circular No. 37-2025 was issued on April 10.

The circular allows for the submission of certified copies of invoices or receipts for sales and purchases instead of the original copies, which should be certified by an authorized official or employee of the corporate claimant, partnership or sole proprietorship, as the case may be.

The BIR said there was a reduction of three documentary requirements, particularly the proofs of registration with the Securities and Exchange Commission or Department of Trade and Industry (DTI), whichever is applicable, and the copies of Import Entry and Internal Revenue Declarations/Informal Import Declaration and Entry or Single Administrative Document.

For claims with amortized input taxes from the importation of capital goods which are filed on a quarterly basis, previous certifications from the Bureau of Customs Revenue Accounting Division can be submitted by taxpayers instead of certified copies, provided that the original copy of certification has been submitted during the processing of the previous claim.

For claims covering taxable periods beginning April 1, 2025, or those claims that are already falling under the effectivity of CREATE MORE, the BIR processing office for VAT refund claims of exporters shall verify the export sales of the taxpayer-claimant on the basis of the certification issued by the Export Marketing Bureau (EMB) of the DTI.

This measure aims to prevent overlapping of validation efforts among government agencies.

Documents evidencing actual export of goods or services shall no longer be required to be submitted as part of the documentary requirements since these will be submitted to the EMB for their scrutiny and issuance of a certification.

Furthermore, sale of goods and services under Sections 106(A)(2)(a)(2), 106(A)(2)(a)(5) and 108(B)(1) of the National Internal Revenue Code have reverted from being subject to 12 percent VAT back to 0 percent VAT under the CREATE MORE Act, which entitles qualified taxpayers to avail of VAT refund. (PNA)

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