RMO No. 42-2024 — Amending certain provisions of Revenue Memorandum Order No. 23-2024 regarding VAT refund claims automatically considered as high-risk or requiring full verification, in relation to the risk-based approach in the verification and processing of Value-Added Tax refunds

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE ) BUREAL OF INTERNATREVENUE RECORDS MANAGEMENT DIVISION OCT 0 2 2024

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:rinoing in Revenves Quezon City 0 2 OCT 2024 ADMtN UNII.3 TIME: :47P

for Nation-building

REVENUE MEMORANDUM ORDER NO. 0 9-2 2.0.24

SUBJECT Amending Certain Provisions of Revenue Memorandum Order No. 23. 2024 regarding VAT Refund Claims Automatically Considered as

High-Risk or Requiring Full Verification, in Relation to the Risk-Based Approach in the Verification and Processing of Value-Added Tax (VAT) Refunds

TO All Internal Revenue Officials, Employees and Others Concerned

I BACKGROUND

policies and procedures in the implementation of the risk-based approach in the verification of concerns of the processing offices and to improve further the efficiency of the processes involved in the risk-based verification of VAT refunds. amended (Tax Code) by Repubtic Act No. 11976 or the Ease of Paying Taxes Act. However, in the course of its implementation, certain provisions thereon have to be amended to address VAT refund claims under Section 112(A) of the National Internal Revenue Code of 1997, as Revenue Memorandum Order (RMO) No. 23-2024 was issued to provide guidelines.

transaction details, etc.) in the schedules of sales and purchases submitted. Previously, were 100% verified against the source documents to check the accuracy of the schedules and the validity of the source documents during the verification stage. are instances of missing or incomplete information (e.g., no reference details, incomplete/no transactions from the schedules of sales and purchases with incomplete or missing information ciaimant submits completely all the documentary requirements as enumerated in the Checklist of Mandatory Requirements under Revenue Memorandum Circular (RMC) No. 71 -2023, there It has been observed during the checklisting procedures that while the taxpayer-

very cruciat, as the scope of verification varies depending on the claim's risk classification. claims, the completeness of the information supplied in the schedules of sales and purchases is With the implementation of the risk-based approach in the verification of VAT refund

risk and shall require i00% verification in accordance with the risk-based approach on the verification of VAT refund claims. schedules of sales and purchases, such applications shall automaticaliy be classified as high Hence, to address the issue of applications with incomplete/missing information on the

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I OBJECTIVE

specifically on the list of VAT refund claims automatically considered as high-risk following the risk-based approach in the verification and processing of VAT refunds. This Order is hereby issued to amend certain provisions of RMO No. 23-2024

H. AMENDMENTS

Section II (1) of RMO No. 23-2024 is hereby amended to read as follows:

"HI. IDENTIFICATION OF THE RISK CLASSIFICATION OF THE CLAIM

1. The following VAT refund claims shall be automatically considered as high-risk or shall require full verification:

a. xx b. xxx c.XxX d.xxx e. xxx f. xxx h. xxx; and XXX R Y BUREAU OF INTERNAL REVENUE RECOROS MHNAGEMENTSIVISIM AANTO ADMIn UNIT - : OCT 0 2 2924 JVE. 1:41

i. Applications with incomplete or missing infornation (e.g., no reference details following the prescribed format. incomplete/no transaction details, etc.) on the schedules of sales and purchases

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be considered as high-risk claims as determined by the Commissioner of Internal The enumeration under (a) to (i) shall not be considered exclusive. Other cases may

separate revemue issuance. " captured in the risk matrix under item 2 of this Section). These shall be covered by a Revenue based on reasonable criteria (e.g. relevant risk factors not otherivise

IV REPEALING CLAUSE

repealed, amended or modified accordingly. All provisions of revenue issuances/memoranda inconsistent herewith are hereby

V EFFECTIVITY

This Order shall take effect immediately.

MAG. R

E YB oner of Internal Re venue