Deadline extended for filing VAT refund claims

MANILA, Philippines — The Bureau of Internal Revenue (BIR) is giving taxpayers more time to file for value-added tax (VAT) refund claims amid movement restrictions to slow the spread of the coronavirus disease 2019 or COVID-19 outbreak.

On June 24, the Department of Finance (DOF) and the BIR issued Revenue Regulations (RR) 16-2020, extending anew the deadlines for the filing of claims for VAT refund.

The deadline was moved to provide relief to taxpayers who find it hard to complete documents or file their applications due to community lockdowns.

“Due to the unprecedented impact of the pandemic to business and government operations, taxpayers claiming for refund of unutilized input VAT find it difficult to complete the necessary documents relative to their VAT refund claim,” the RR stated.

“Moreover, even for those with complete documents, the unavailability of appropriate mode of transportation to make possible the filing of such application is another problem,” it said.

Given these complications, the new regulation provided that the application for VAT refund claims covering the quarter ending March 31, 2018 is now due on July 15.

The due date for VAT refund claims for the fiscal quarter ending April 30, 2018 and May 31, 2018 are likewise extended to July 31 and Aug. 15, respectively.

Taxpayers also have until Aug. 31 to file for their claims for the calendar quarter ending June 30, 2018.

“This however does not apply to areas not yet declared to be in a general community quarantine state. In which case, the deadline shall be 30 days from the lifting of the enhanced community quarantine or modified enhanced community quarantine in the affected areas of taxpayer-claimant or the above-stated deadlines, whichever comes later,” the RR said.

Finally, the RR stated that the implementation of the 90-day period for processing VAT refund claims is suspended in areas where the enhanced community quarantine or modified enhanced community quarantine is still in force.