.
.
The DOF, DBM, BIR and BOC issued Joint Circular Nos. 2-2012 and 3-2012 implementing the monetization program for VAT Tax Credit Certificates (TCCs) under Executive Order No. 68, series of 2012.
Application Deadline: The interested TCC holders must submit their application together with original copies of the TCCs to the issuing agency (BIR, BOC, or the One-Stop-Shop Center of the DOF) within 30 days after the effectivity of the Joint Circular.
Monetization Scheme: Upon verification and validation of the TCC and the application, the issuing agency shall issue the Notice of Payment Schedule (NPS), detailing the taxpayer’s information, refundable amount, and the TCC maturity date. Holders of the NPS shall have the following options:
a. Hold on to the NPS and receive the full cash value upon maturity date (expiry date of the TCC). The NPS must be presented for payment with the issuing agency within 30 calendar days before maturity date.
b. Sell the NPS to government financial institutions at a discount to be set by the DOF and the GFIs.
Transitory provisions: Taxpayers with pending applications for drawback claims before BOC and the DOF-OSS Center, within 3 months from effectivity of the Joint Order, should notify the DOF-OSS Center in writing of their preference for TCC instead of cash refund. Requests for VAT TCC encashment pending with the BIR as of the effectivity of EO 68 may still be processed pursuant to Revenue Regulations No. 5-2000 regardless of the maturity dates, subject to availability of funds.
.
.
