The Bureau of Internal Revenue (BIR) has released Revenue Memorandum Order (RMO) No. 38-2025, which consolidates and updates the documentary requirements, procedures, and timelines for processing excise tax refund claims on petroleum products. RMO No. 38-2025 supersedes RMO No. 16-2024 and aligns with recent amendments under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, Ease of Paying Taxes (EOPT) Act, and Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.
Who are qualified to apply for excise tax refunds?
Under Section 135 of the Tax Code, importers, local manufacturers and suppliers of petroleum products are qualified to apply for excise tax refunds, provided the petroleum products are sold to international carriers for use outside the Philippines, entities covered by tax treaties, conventions or international agreements with reciprocity, or entities legally exempt from taxes.
What are the documentary requirements?
An eligible taxpayer-applicant must submit the following general requirements:
- Application or request letter detailing the transaction background, legal basis, and covered period;
- Application for Tax Credit/Refund (BIR Form No. 1914);
- Notarised secretary’s certificate authorising the signatory and representatives, with valid identification documents;
- SEC Certificate of Registration and Articles of Incorporation and By-Laws;
- Audited financial statements or recent books of accounts showing the claim for refund;
- Sworn statement using the prescribed format as provided by the BIR;
- Invoices with a “no excise tax” notation as proof that the excise tax was not billed to the customer;
- Summary list and photocopies of excise tax returns (BIR Form No. 2200-P), with bank receipts, if applicable;
- Excise tax refund summary;
- Withdrawal certificates with corresponding delivery receipt numbers; and,
- Importation documents such as supplier’s invoice, bills of lading, authority to release imported goods, and other relevant customs and shipping documents that support the excise tax payment and exemption claim.
Additional requirements apply depending on the nature of the sale (e.g., to international carriers, exempt entities, or economic zone locators), including proof of exemption, fuel marking certificates, and certifications from regulatory bodies.
Where should excise tax refund applications be filed?
Excise tax refund applications must be submitted to the appropriate Revenue District Office (RDO), the Large Taxpayer Audit Division (LTAD), or the Large Taxpayer District Office (LTDO), depending on where the taxpayer is registered or classified under BIR jurisdiction.
What are the prescribed periods for excise tax refund filing and approval?
Excise tax refund applications must be filed within two (2) years from the date of payment of the tax or penalty. Claims should be submitted on a quarterly basis, aligned with the taxpayer’s accounting period. Once complete documents are submitted, the BIR is required to process the refund within 90 calendar days. Of this period, 75 days are allocated for the review and evaluation of the documents, while the remaining 15 days are allotted for payment processing.
RMO No. 38-2025 applies prospectively to all excise tax refund claims on petroleum products filed on or after April 1, 2025. Claims filed prior to April 1, 2025, shall continue to be governed by the provisions of RMO No. 16-2024.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd
As published in SunStar Cebu, dated 01 October 2025
