BIR streamlines VAT Refund documentary requirements

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In line with the implementation of reforms on VAT refund under Republic Act (RA) No. 12066, also known as the CREATE MORE Act, the Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 37-2025 dated April 10, 2025, to streamline the documentary requirements for VAT refund claims anchored under Section 112 of the National Internal Revenue Code (NIRC) of 1997, as amended.

The most notable change in the documentary requirements for VAT refund claims (regardless of the taxable period covered) is 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.

Moreover, there was a reduction of three (3) 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 (IEIRD)/Informal Import Declaration and Entry or Single Administrative Document.

For claims with amortized input taxes from importation of capital goods which are filed on a quarterly basis, previous certifications from the Bureau of Customs Revenue Accounting Division (BOC-RAD) 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 R.A. 12066, 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. As such, 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 NIRC have reverted from being subject to 12% VAT (as imposed under the TRAIN Law) back to 0% VAT under the CREATE MORE Act, which entitles qualified taxpayers to avail of VAT refund.

“The BIR, together with the government's legislative and executive branch, is committed to improving and simplifying the necessary documentation and processing requirements for future VAT and other tax refund claims to better serve the taxpaying public,” said Commissioner Romeo D. Lumagui, Jr. 

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