Coverage
- Applies to all claims for refund of input VAT on importations attributable to zero-rated transactions under Section 112 of the NIRC, as amended.
Operational Provisions
- Upon BIR's approval of VAT refund claim, the Tax Credit Secretariat (TCS) receives the docket with supporting documents:
- Copy of claimant's VAT refund application.
- BIR endorsement to BOC with validity determination and authority for VAT credit/refund issuance.
- Import Entry and Internal Revenue Declarations, BOC Official Receipts or Statement of Settlement, Single Administrative Documents, and List of Importations.
- Secretariat verifies completeness and endorses to Chief, Revenue Accounting Division (RAD) for payment verification.
- RAD certifies collections and remittances to Bureau of Treasury (BTr).
- Secretariat endorses docket to Chief Accountant, Accounting Division, Financial Management Office (FMO) for refund validation and computation.
- FMO issues Evaluation Report.
- Secretariat determines whether refund or Tax Credit Certificate (TCC) will be issued and prepares endorsement for Commissioner or authorized authority's signature.
- Signed resolution forwarded to FMO Accounting Division for cash refund preparation or TCC issuance.
Manner of Payment for Cash Refund
- Subject to availability of appropriated funds and compliance with budget laws.
- Procedures adopt COA-DBM-DOF Joint Circular No. 1-97 guidelines for trust receipts and release of funds for tax refunds.
- FMO opens and maintains MDS-Sub account with servicing bank.
- RAD issues Journal Entry Voucher for fund transfer from General Fund to Trust Fund.
- FMO requests BTr certification to confirm fund availability.
- Within 5 days of payment authorization, FMO requests Notice of Allocation (NCA) from DBM, supported by:
- Authorized endorsement for payment.
- Copy of VAT refund application.
- BIR endorsement with authority.
- RAD payment certification.
- FMO computation of refund amount.
- Upon NCA receipt, FMO prepares Disbursement Voucher forwarded to BOC Cashier.
- Cashier issues check to claimant or authorized representative with proper documentation.
Clearance of No Outstanding Liability
- Claimant must secure Clearance from Collection Service confirming no outstanding BOC liabilities.
- Claims will not be processed if liabilities are unsettled.
Treatment of Pending Applications
- Applicants with pending claims or unissued TCCs may opt for cash refund by submitting formal letter to Secretariat.
Submission of Quarterly Reports
- Accounting Division, FMO prepares monthly and quarterly reports on utilization of cash refund appropriations.
- Quarterly reports submitted to Commissioner of Customs for submission to DBM, House Committee on Appropriations, and Senate Committee on Finance.
- Reports assist in evaluation and budget preparation for BOC.
Effectivity
- Order takes effect immediately upon signing by the Commissioner.