The CREATE MORE Act ushered in changes to certain documentary requirements for VAT refund claims. Beyond compliance lies a jungle of possibilities and challenges — where does your business stand? Dive into this article to uncover recent updates and explore the intricacies of securing VAT refunds amidst a sea of change.
CREATE MORE has generally adopted the same standards from the old VAT refund laws, including the following: 1. the grant or decision should be made within 90 days from the date of the submission of the application, and 2. the application will be subject to a risk assessment. However, it also introduced a new recourse for denied VAT refund claims — request for reconsideration prior to proceeding to judicial appeal, i.e., filing with the Court of Tax Appeals.
With respect to supporting documents, CREATE MORE also codified that certified true copies (CTC) of invoices, receipts, and other documents required under the rules can now be submitted to support the taxpayer’s claim — a welcome development as this gives claimants more flexibility, as opposed to the previous rules which required the submission of original documents. Moreover, VAT zero-rating will apply to the sale of goods and services to an export-oriented enterprise (EOE) whose export sales are at least 70% of the total annual production of the preceding year.
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