THE Bureau of Internal Revenue recently issued Revenue Regulation 16-2020 on the further extension of due dates for filing of VAT refund claims covering taxable quarters affected by the implementation of the enhanced community quarantine (ECQ) and suspension of the 90-day processing period due to the spread of the pandemic.
Application of VAT refund claims covering the following taxable quarters shall be due on the following dates:
For areas not yet under general community quarantine as is the case for Cebu City, the deadline shall be 30 days from the lifting of the ECQ or modified enhanced community quarantine (MECQ) or the above stated deadlines, whichever comes later. The 90-day processing period of VAT refund claims is suspended in areas still under ECQ or MECQ.
The VAT refund claim stems from Section 112 of the Tax Code, as amended by Republic Act 10963, otherwise known as the Train Law, wherein it provides that a VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two years after the close of the taxable quarter when the sales were made, apply for the issuance of a VAT refund from excess input VAT.
Source: P&A Grant Thornton
Certified Public Accountants
As published in SunStar Cebu, dated 15 July 2020