BIR Streamlines VAT Refund Rules Under CREATE MORE Law

The Bureau of Internal Revenue (BIR) has announced a major overhaul of its documentary requirements for value-added tax (VAT) refund claims, easing the process for businesses under the recently enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act, or CREATE MORE.

Under Revenue Memorandum Circular (RMC) No. 37-2025 dated April 10, the BIR aligned refund procedures with Section 112 of the National Internal Revenue Code (NIRC), as amended, to support the implementation of Republic Act No. 12066.

A key reform allows taxpayers to submit certified copies of sales and purchase invoices or receipts instead of the original documents. These must be certified by an authorized representative of the claimant, whether a corporation, partnership, or sole proprietorship.

The circular also removes three documentary requirements: registration proof from the Securities and Exchange Commission or Department of Trade and Industry (DTI), and copies of the Import Entry and Internal Revenue Declarations (IEIRD) or equivalent customs documents.

For taxpayers claiming amortized input VAT from imported capital goods quarterly, certifications previously issued by the Bureau of Customs Revenue Accounting Division (BOC-RAD) can now be reused, provided the original was already submitted during a prior claim.

Effective April 1, 2025, refund claims from exporters will be verified through a single certification issued by the DTI’s Export Marketing Bureau (EMB), streamlining inter-agency coordination and eliminating the need to resubmit proof of export transactions.

This move aligns with provisions in the CREATE MORE Act that restore 0% VAT on qualified transactions previously taxed at 12% under the TRAIN Law, specifically those under Sections 106(A)(2)(a)(2), 106(A)(2)(a)(5), and 108(B)(1) of the NIRC.

“The BIR, together with the government’s legislative and executive branch, is committed to improving and simplifying the necessary documentation and processing requirements for future VAT and other tax refund claims to better serve the taxpaying public,” said BIR Commissioner Romeo D. Lumagui, Jr.

The VAT refund process has long been a concern among exporters and foreign investors due to delays and cumbersome documentation. These recent changes are seen as critical steps toward a more investor-friendly tax system.

The CREATE MORE Act builds on the earlier CREATE Law (Republic Act No. 11534), which restructured corporate income taxes and rationalized fiscal incentives to attract more foreign and domestic investments.