- BIR Revenue Regulation No. 3-2024 guides sellers on claiming output VAT credit on uncollected receivables
- Republic Act 11976 (Ease of Paying Taxes Act) provides relief for cash flow issues from output VAT on uncollected receivables
- Sellers can reclaim VAT paid in advance if receivables remain uncollected after agreed period
- Requirements to qualify for claiming VAT credit on uncollected receivables
- Failure to meet conditions will result in disallowance of tax credits by BIR
- Revenue Memorandum Circular 65-2024 clarifies issues and provides guidelines on regulation implementation
- Seller claiming output VAT credit on uncollected receivables prevents delinquent buyer from claiming corresponding input VAT
Source: www2.deloitte.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.
