Input taxes on zero-rated sales of goods, properties or services
The input taxes on zero-rated sales of goods, properties or services may at the option of the VAT-registered person be:
- Refunded (within 2 years after the close of the quarter when such sales were made); or
- Converted into tax credit certificates which may be used in paying other NIRC taxes (the two-year peremptory period applies); or
- Applied against the output tax of domestic sales.
Unused input tax of persons who retired
Unused input taxes of persons whose registration has been cancelled due to retirement from or cessation of business may be converted into tax credit certificate which may be used in payment of other NIRC taxes within 2 years from the date of cancellation or claim for refund if there be no internal revenue tax liabilities against which the tax credit certificate may be utilized.
Period within which to refund
Refund or tax credit certificate shall be granted within 120 days from the date of submission of complete documents.
Manner of giving refunds
Refunds shall be made upon warrants drawn by the Commissioner of Internal Revenue or by his authorized representative without the necessity of being countersigned by the COA Chairman.
JONATHAN RUIZ CPA, MIB