Refined VAT refund guidelines

TO streamline the documentary requirements and verification procedures for the filing and processing of value-added tax (VAT) refund claims, the Bureau of Internal Revenue (BIR) issued Revenue Memorandum Order (RMO) 23-2023 and Revenue Memorandum Circular (RMC) 71-2023, which introduced significant changes to the policies and procedures outlined in RMO 47-2020. The new guidelines are applicable to VAT refund claims that will be filed starting July 1, 2023.

As with previous guidelines, claims of direct exporters, regardless of the percentage of export sales to total sales and whose claims are anchored under Section 112 (A) of the Tax Code as amended (except for claims with a mix of VAT zero-rated sales emanating from sales of power or fuel from renewable energy sources) should be filed with the VAT Credit Audit Division in the BIR National Office.