All VAT-registered taxpayers with outstanding VAT Tax Credit Certificates (TCCs) may convert their TCCs into cash under the government's TCC monetization program as implemented by Executive Order No. 68 (March 27, 2012).
The program will cover TCCs issued for input VAT from zero-rated sales and outstanding VAT component of drawback TCCs on imported materials issued pursuant to Section 106 (e) of the Tariff and Customs Code of the Philippines.
Qualified taxpayers will be given the following options:
1. Collect in advance from a trustee bank a discounted value of their TCCs
2. Collect the full cash value of the TCCs upon a certain maturity date
The monetization program will run from 2012 to 2016. All applications for monetization shall be subject to verification and other conditions under the rules and regulations implementing E0 68.
Beginning 2012, cash refunds shall be issued for applications for VAT refund unless the taxpayer specifically requests for a TCC.
Please see attached copy of EO 68.
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