MANILA, Philippines — The Supreme Court (SC) has issued a ruling clarifying the prescriptive periods for filing value-added tax (VAT) refund claims with the Commissioner of Internal Revenue (CIR).

In a decision penned by Associate Justice Alfredo Benjamin S. Caguioa, the SC’s Third Division ruled that for VAT refund claims filed before June 11, 2014, the 120-day period for the CIR to resolve the claim begins when the taxpayer determines that its submission of documents is complete.

The Court summarized the rules for filing administrative VAT refund claims based on relevant Revenue Memorandum Circulars (RMCs) and the Tax Reform for Acceleration and Inclusion (TRAIN) Law as follows:

A. Administrative claims filed before June 11, 2014:

1. The 120-day period starts from the date of filing the administrative claim with complete documents or when the taxpayer indicates that no additional documents will be submitted.
2. If the BIR requests additional documents, the taxpayer has 30 days to comply, and the 120-day period begins upon submission or expiration of the given period.
3. If the BIR does not notify the taxpayer that the submission is incomplete, the 120-day period begins from the date the taxpayer voluntarily submitted additional documents.
4. The taxpayer must file the administrative claim within two years from the end of the taxable quarter.

B. Administrative claims filed from June 11, 2014, until December 31, 2017:

1. The 120-day period begins from the date of filing the administrative claim with complete supporting documents.
2. The taxpayer cannot submit additional documents.
3. The taxpayer must file the administrative claim within two years from the end of the taxable quarter.

C. Administrative claims filed beginning January 1, 2018:

1. The BIR has 90 days to resolve the administrative claim from the date of its filing with complete supporting documents.
2. Once an administrative claim is filed, the BIR shall no longer require additional documents from the taxpayer. If the taxpayer submits an incomplete claim, it shall be disallowed outright.
3. The taxpayer must file the administrative claim within two years from the end of the taxable quarter or the issuance of tax clearance in instances of cancellation of registration or cessation of business.