Taxation Law: Rules on the Determination of the Prescriptive Period for Filing a Tax Refund or Credit of Unutilized Input VAT under Section 112 of the Tax Code

Rules on the Determination of the Prescriptive Period for Filing a Tax Refund or Credit of Unutilized Input VAT under Section 112 of the Tax Code

An administrative claim must be filed with the CIR within two years after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made.
The CIR has 120 days from the date of submission of complete documents in support of the administrative claim within which to decide whether to grant a refund or issue a tax credit certificate. The 120-day period may extend beyond the two-year period from the filing of the administrative claim if the claim is filed in the later part of the two-year period. If the 120-day period expires without any decision from the CIR, then the administrative claim may be considered to be denied by inaction.
A judicial claim must be filed, with the CTA within 30 days from the receipt of the CIR's decision denying the administrative claim or from the expiration of the 120-day period without any action from the CIR.
All taxpayers, however, can rely on BIR Ruling No. DA-489-03 from the time of its issuance on 10 December 2003 up to its reversal by this Court in Aichi on 6 October 2010, as an exception to the mandatory and jurisdictional 120+30 day periods.

Source:

HEDCOR SIBULAN, INC., PETITIONER, VS. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

G.R. No. 202093. September 15, 2021

J. Hernando

Full text here

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