Finance Undersecretary Karl Kendrick Chua said the Tax Reform for Acceleration and Inclusion law introduced four reforms in processing applications for value-added tax refunds of exporters and other qualified entrepreneurs to ensure that all claims are completed and paid out within 90 days of submission.
Chua said in a recent business forum in Makati City these reforms under the Enhanced VAT Refund System provide for the setting up of a special trust account in the General Fund sourced from 5 percent of the total VAT collections of the Bureau of Internal Revenue and the Bureau of Customs from the immediately preceding year to ensure money is available for VAT refunds.
It also provides for basing revenue targets set for the next fiscal year on net of VAT refunds, a plan to conduct a risk-based post audit to do away with the tedious process of auditing claims before giving a refund and implementation of an electronic invoicing and receipts system.
“So all of these together will allow the refund process to be better. We changed the incentives so that the refund system can be better given,” Chua said during the Wallace Business Forum.