Gov’t allocates 5% of VAT collections for refund claims

Value-added tax (VAT) refunds now have a steady source of funds as the government has allotted 5 percent of all VAT collections by the country's two biggest revenue agencies for that purpose. Joint Circular No. 1-2018 issued by the Department of Finance (DOF), Department of Budget and Management, Bureau of the Treasury, Bureau of Internal Revenue (BIR), Bureau of Customs (BOC) and Commission on Audit (COA) implemented the provisions of Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act on VAT refunds. Under the TRAIN law, 5 percent of the combined VAT collections of the BIR and the BOC will be treated as trust receipts to cover VAT refund claim pay...

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