THE secretary of Finance has

THE secretary of Finance has issued Revenue Regulations 26-2018, which amends sure portions of RR thirteen-2018, or the “2018 Value-added Tax (VAT) Regulations.” RR 13-2018 implements the VAT and percentage tax provisions of Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (Train) Act. Like Train, RR 13-2018 took effect on Jan. 1, 2018.

Before we dive into the amendments brought by using RR 26-2018, it might be worthwhile to review a number of the salient provisions of RR 13-2018:

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The following export sales of products and offerings remain subject to zero-percent VAT:

– The sale of raw or packaging substances to a non-resident client for shipping to a resident nearby export-oriented employer as a way to be used in manufacturing, processing, packing or repacking that customer’s goods in the Philippines, paid for in ideal overseas forex and accounted for in accordance with the regulations and policies of the Bangko Sentral ng Pilipinas (BSP).

– The sale of raw or packaging substances to an export-orientated organisation whose export income exceed 70 percent of overall annual production.

– Transactions taken into consideration “export income” beneath the Omnibus Investments Code of 1987 and other special legal guidelines.

– Processing, production or repacking items for different people doing business outside the Philippines, which are sooner or later exported and where the offerings are paid for in acceptable foreign foreign money and accounted for in accordance with the policies and rules of the BSP.

– Services rendered by using contractors in processing, changing or production goods for an company whose export sales exceeds 70 percentage of general annual production.

The abovementioned export income shall be problem to 12-percentage VAT as soon as those conditions occur:

– The status quo and implementation of an greater VAT refund gadget that offers and will pay refunds of creditable input tax within ninety days from the submitting of the VAT refund utility with the Bureau of Internal Revenue (BIR).

– All pending VAT refund claims as of Dec. 31, 2017 shall be completely paid in cash by means of Dec. 31, 2019.

For this purpose, the Department of Finance shall set up a VAT Refund Center within the BIR and within the Bureau of Customs to method and supply cash refunds of creditable enter tax.

For this cause, RR 26-2018 clarified that the ninety-day duration provided to the BIR to process the claims for refund for creditable enter tax shall start from the filing of the declare up to the release of the price of the refund.

In addition, the claim is considered to have been filed only after the taxpayer submits the reliable receipts/invoices and different files to support his or her application.

If the 90 days lapse with out the refund released to the taxpayer, the declare may also nevertheless be processed administratively. Any BIR employee who fails to behave at the claim inside 90 days shall, upon conviction, be fined and imprisoned, and also be permanently disqualified from preserving public workplace, voting and taking part in any election.

The amendments added by using RR 26-2018 shall follow to claims for refund filed upon the efficiency of RR 13-2018.