RR No. 26-2018 — Amends certain provisions of RR No. 13-2018 to implement the 90-day processing of claim for VAT refund under Section 112 (C) of the Tax Code of 1997, as amended by RA No. 10963 (TRAIN Law) (Published in Manila Times on January 1, 2019) Digest | Full Text

,---,-g-. BUREAU OF INTERNAL REVE,NuE F THE PHILIPPINES 2018 ENT OF FINANCE IT AI REVENUE RECORDS MGT. DIVISION REvENUE REGULATIoNS No. *.{" - *o tg SUBJECT: Date: Decembei 21, 2O1B Amends Certain Provisions of Revenue Regulations No. 13-2018 to Implement the 90-Day Processing of Claim for YAT Refund Under Section llz(C) of the Tax Code of 7997,, as amended by Republic Act (R.A.) No. 10963, Otherwise Known as the Tax Reform for Acceleration and Inclusion or TRAIN TO All Internal Revenue Officials, Employees and Others Concerned SECTION 1. SCOPE. Pursuant to the provisions of Sections 244 and 245 of the National Intemal Revenue Code of 1997 (Tax Code), as amended, these Regulations are hereby promulgated to amend cefiain provisions of Revenue Reguiations (RR) No. 13-2018 to effect the amendments made in Section 112(C) in relation with Sections 106(A)(2)(a)(3), (4), and (5) and 108(8)(1) and (5) of the Tax Code, as amended by R.A. No. 10963 or the TRAIN. SECTION 2. AMENDMENTS. Sections 4.106-5.4.108-5, 4.112-l and 13 of RRNo. 13-2018, are hereby further amended to read as follows: "SEC.4.106-5. Zero Rated Sales of Goods or Properties. - xxx. xxx xxx xxx. Provided, Thutitems abovementioned shall be subi o longer be subiect to zero YAT rate u on satisfaction of the foll l. VAT refund stem that nts refunds and s refun tax lvithin nin 90) days from the filine of the VAT refund annlication with the Bureau: of Item no. 1. all arrrrlications filed from Janua 1. 2018 shall be the filine of the w VAT refund arrrrlication. The 90-dav neriod to process and decide shall sturt from the filing of the 'icution/claim for refund up to the release of the t of the V ihe ciainuapoiication is consiciereri io hrtve been iled onl submissi, clocuments in suoport of tlte erytplicution as nrescribed under pertinent r(v(n u( iqsuttncer, The Secretarv of tFhineanecenhsahnacllerrdroVvidAeTtraRnseiftounn,druSlevssftoermthae fgterarntthoef refund under determination of the fulfillment of the condition bv the Commissioner of Internal Revenue as nrovided in item 1 naragrarrh t hereof; and 2. All nencling VAT refund claims as of December 31. 2017 shall be fullv rraid in cash by December 31. 2019. I'age 1 of 3

Prov De artmen nce shall VAT refu ter in t tax. handle t and the and ntins o ofc XXX XXX XXX - SEC. 4.108-5. Zero Rated Sale of Serryices. xxx xxx xxx Proviclecl, Thut sub bXl) and ft entioned h ubiect t lax and no longer be subiect t ()%) VA owins conditi 1. The I establishment entation of hanced VAT refund nts refunds and nds ofcre ut w n ntne nffiE annlicati w e Bureau: to determi effectivi fund davs fro iline of ffiE atEr 90-da 'riod and decide slt 'rom tlte =o r-.g8 t* 'und, P, 'ial rece voices and -ol sa 'c.EoS) docu rti revenue lssuances. o The Secretarv o ce shall rules fr nt of the en VAT Refun determination fulfillment tem after I Revenue as vided in item 1 stoner claims Provided. the Denartment nance shall es VAT refund rln rflnAssrno q the BIR and in t granting of cash refunds of creditable inrrut tax. XXX XXX XXX SEC. 4.112-1. Claims for Refund/Credit of Input Tax. - xxx xxx xxx (d) Period within which refund/credit of input taxes shall be made .. clcditab-1le., proper cases, the Commissioner of Internai Revenue shal1 grant refund for ninetr iuput ta:'es tithin other J9C) dal s h'om 1hc claLe oisubnrissiJn of rhu oflficial receipts or invoices and documents i accordance with subsections (a) and (b) hereol Commi r find that the the state in writi refund is not ommissioner m I and factual the denial. to the rel riod to nd decide shall start the Tlins o tlre tlte e VAT refitnd. Prc That, the im/application is ciul receiDts or i, uncl other doc unrler pertinenl reven ue iss uunces. the 'scrt, i." Page 2 o{'3

In case of flill or partial denial of the claim for tax refund, the taxpayer affected, may, within thirty (30) days frorn the receipt of the decision denying the ciaim, app"ui the decision with the court of rax Appeali (crA): provicred, iliat Vailure on anv official, the B ithin the iod shall thg Tar Code, os ble under Secti, amended. nt ltuvin the refun 'nt, or ine of the VAT re said section. xxx xxx xxx" "SECTION 13. TRANSITORY PROWSIONS. - This section is re-numbered to Section 3. xxx x,Yx ,T"Y.X 3. The..foregoing amendntent, relative to the 90-day processing period of claims to include the payment thereof, shall apply to claint.y to be filed upon the iSectivity o7 these Regulations." parls SECTION 4. REPEALING CLAUSE. o- f Any rules and regulations, issuances or thereof inconsistent with. the provisions these Regulations are hereby repealed, amended or modified accordingly. SECTION 5. SEPARABILITY CLAUSE. - If any of the provisions of these Regulations is subse.quently declared unconstitutional, the validity of the rbmaining provisions hereof shall remain in full force and effect. SECTION 6. iEn FleFaEdinCgTnMewTsYpa.p-ers These Regulations shall take effect immediately following publication of general circulation. CARLOS G. DOMI Secretar-v of Finance 0051 I B Recommending Approval : r BUREAU OF IN TERN AL REVENUE LI 7.mfn\ -r#*ry/ CAESAR R. DULAY /?:,0&,Q a4.tu' Commissioner of Internal Revenue ruM DECZ2?,e04*l0tlrt8ililll)) It ozl g g 3 RECO S MGT, DI vlsr0N iragc 3 of 3