Meeting the refund requirements to claim VAT refunds is considered an uphill climb, and the associated tax administration procedures are complex and burdensome, discouraging taxpayers from claiming legitimate VAT refunds. Under the new checklist, the BIR has dispensed with submitting the annual income tax return, VAT returns, withholding VAT returns, etc. Other mandated policiesFor VAT refund applications filed beyond the two-year prescriptive period, the claim shall still be accepted. Further, the BIR will now accept VAT refund applications of taxpayer-claimants with existing tax delinquencies reflected in the Delinquency Verification Certificate (DVC). The efforts of the BIR in adhering to the Ease of Doing Business Law through these refined guidelines for VAT refund applications are indeed commendable.
