- BIR warns lack of supporting documents in VAT refund applications will raise risk category
- If “no supporting documents” for sales or purchases exceeds 1% of total amount, application will be classified as high-risk
- Classification does not count as incomplete submission but results in disallowance of unsubstantiated portions
- Republic Act No. 11976 established risk-based system for classifying VAT refund claims
- BIR uses points system to assess claims based on factors like claim size and tax compliance history
- Applicants must submit documentation before being assigned risk level
- Low-risk claims will only be classified with complete documentation
Source: fiscal-requirements.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.
