21/02/2025
The (SC) has clarified the prescriptive periods for filing value-added tax (VAT) refund claims with the Commissioner of Internal Revenue (CIR).
In a Decision penned by Associate Justice Alfredo Benjamin S. Caguioa, the SC’s Third Division ruled that for VAT refund claims filed before June 11, 2014, the 120-day period for the CIR to resolve the claim begins when the taxpayer determines that its submission of documents is complete.
The SC summarized the rules for filing administrative VAT refund claims under the relevant RMCs and the TRAIN Law, as follows:
𝗔. For administrative claims filed 𝗯𝗲𝗳𝗼𝗿𝗲 𝗝𝘂𝗻𝗲 𝟭𝟭, 𝟮𝟬𝟭𝟰:
1. The 120-day period begins from the date of filing the administrative claim with complete documents or when the taxpayer indicates that it will no longer submit additional documents.
2. If the BIR requests additional documents, the taxpayer has 30 days to comply, and the 120-day period begins upon submission or expiration of the given period.
3. If the BIR does not notify the taxpayer that the submission is incomplete, the 120-day period begins from the date the taxpayer voluntarily submitted additional documents.
4. The taxpayer must file the administrative claim within two years from the end of the taxable quarter.
𝗕. For administrative claims filed 𝗳𝗿𝗼𝗺 𝗝𝘂𝗻𝗲 𝟭𝟭, 𝟮𝟬𝟭𝟰 𝘂𝗻𝘁𝗶𝗹 𝗗𝗲𝗰𝗲𝗺𝗯𝗲𝗿 𝟯𝟭, 𝟮𝟬𝟭𝟳:
1. The 120-day period begins from the date of filing the administrative claim with complete supporting documents.
2. The taxpayer cannot submit additional documents.
3. The taxpayer must file the administrative claim within two years from the end of the taxable quarter.
𝗖. For administrative claims filed 𝗯𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟭, 𝟮𝟬𝟭𝟴:
1. The BIR has 90 days to resolve the administrative claim from the date of its filing with complete supporting documents.
2. Once an administrative claim is filed, the BIR shall no longer require additional documents from the taxpayer. If the taxpayer submits an incomplete claim, it shall be disallowed outright.
3. The taxpayer must file the administrative claim within two years from the end of the taxable quarter or the issuance of tax clearance in instances of cancellation of registration or cessation of business.
Read the full text of the Press Release at https://sc.judiciary.gov.ph/sc-clarifies-vat-refund-deadlines/.
Read the full text of the Decision at https://sc.judiciary.gov.ph/246379-2/ .
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Courtesy of the Supreme Court Public Information Office Page
