Erroneously passed-on input VAT

IN last week's article, we discussed Revenue Memorandum Circular (RMC) 24-2022, which interpreted the rules on value-added tax (VAT) zero rating under the National Internal Revenue Code as amended by the Create Act (Republic Act 11534). Specifically, RMC 24-2002 interpreted the provisions of Sections 294(E) and 295(D) of the Tax Code, which provide that VAT zero-rating on local purchases only applies to goods and services directly and exclusively used in the registered project or activity by a registered business enterprise (RBE).

So, what happens if a supplier erroneously passes on VAT to an RBE or it is later discovered that such input VAT was not directly and exclusively used in the registered project or activity of an RBE? Can the RBE validly apply for a refund from the Bureau of Internal Revenue (BIR)?