- Lack of supporting documents on sales and purchases for VAT refund applications will increase risk category
- ‘NSD’ or ‘no supporting documents’ will result in disallowance of unsubstantiated portion of sales or purchases
- VAT refund claims classified as low, medium, or high risk based on points system
- Refund claim risk level determined after submission of documentation to BIR processing office
- Processing of VAT refund claims must be completed within 90 days
- Low-risk claims require complete documentation and no verification procedure
- High-risk claims include those filed by first-time claimants and those where claimant cannot be located
- Medium-risk claims subject to 50% verification of sales amounts and total invoices or receipts
- Input VAT claimed from local suppliers flagged under Run After Fake Transactions program will not be refunded.
Source: bworldonline.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
