MANILA — The Bureau of Internal Revenue (BIR) has removed its value-added tax audit units for large taxpayers as part of efforts to streamline tax examinations under its single-instance audit framework.

Under Revenue Administrative Order No. 004-2026, the BIR abolished the Large Taxpayers VAT Audit Unit (LT VAU) under the Large Taxpayers Service and the VAT Audit Section (VATAS) under the Assessment Division of regional offices.

The agency said the functions previously handled by the LT VAU and VATAS will be transferred to appropriate divisions and offices under the Large Taxpayers Service, revenue regions, and revenue district offices.

Personnel affected by the reorganization will be reassigned or transferred to other offices.

BIR Commissioner Charlito Mendoza said the order formalizes the abolition of the VAT audit units following the implementation of the agency’s single-instance audit framework.

“The RAO formalizes the actual abolition of the VAT Audit units since [we’re already using the] single-instance audit framework as provided in RMO 1-2026,” Mendoza said in a Viber message.

Revenue Memorandum Order No. 001-2026, issued in January, outlines revised policies, controls, and procedures governing the initiation, conduct, and assessment of tax audits.

According to the BIR, the measure seeks to promote transparency, prevent the misuse of audit authority, and ensure due process.

The order was issued after taxpayers, stakeholders, and internal BIR units raised concerns over alleged irregularities and inconsistencies in tax audit practices.

Under the single-instance audit framework, taxpayers may be subjected to only one electronic Letter of Authority for a specific taxable year. The audit covers all applicable internal revenue taxes, including value-added tax.