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REVENUE MEMORANDUM ORDER NO. 042-2024
| Scope | Amendments on certain provisions of RMO No. 23-2024, which provides guidelines for the risk-based approach in verifying VAT refund claims under Section 112(A) of the National Internal Revenue Code of 1997, as amended by the Ease of Paying Taxes Act (Republic Act No. 11976). |
| Background | RMO No. 23-2024 was issued to establish guidelines for a risk-based approach in verifying VAT refund claims. During its implementation, even though the taxpayer- claimant submits completely all the documentary requirements as enumerated in the Checklist of Mandatory Requirements under Revenue Memorandum Circular (RMC) No. 71-2023, it was found that some claims had incomplete or missing information in the schedules of sales and purchases, necessitating 100% verification against source documents. To address these issues and improve efficiency, the order was amended to classify such claims as high-risk, requiring full verification to ensure accuracy and completeness in the VAT refund process. |
| Key Amendments | High-Risk Classification: VAT refund claims with incomplete or missing information in the schedules of sales and purchases (e.g., no reference details, incomplete/no transaction details, etc.) are automatically classified as high-risk and require 100% verification. (Underscoring ours) Additional Criteria: The Commissioner of Internal Revenue may classify other cases as high-risk based on reasonable criteria not captured in the existing risk matrix. |
| Effectivity | Immediately upon issuance (October 2, 2024). |