Author MRTC

REVENUE MEMORANDUM ORDER (RMO) NO. 038-2025

RMO No. 16-2024 prescribes and updates the documentary requirements and standard procedures for processing excise tax refund claims on petroleum products.

This order is issued with the following purposes:

Amend pertinent provisions of RMO No. 16-2024 and its Annex “A” (Updated List) of documents to be Submitted for Claims for Excise Tax Refund on Petroleum Products); and Provide consolidated standard policies and procedures in the processing of applications for excise tax refund on petroleum products in Revenue Districts Offices (RDO) and Large Taxpayers Service (LTS).

For General Policies:

1. Claims for excise tax refund must conform with the following requisites:

  1. The refund shall pertain to claims under Section 135 of the Tax Code.
  2. Filed within 2 years after payment of the tax or penalty.
  3. The claim must be supported with a written application together with the application for refund (BIR Form No. 1914) with proof of payment remitted to the BIR and/or the BOC.

  2. Offices authorized to receive the Application for excise tax refunds:

  1. The RDO;
  2. The respective Large Taxpayer Audit Division (LTAD) or Large Taxpayer District Office (LTDO) under the LTS.

In all cases, the Revenue Office (RO) – Assessment designated as Officer of the Day shall receive claims filed at the aforesaid authorized processing office with the taxpayer-claimant attestation that the documents submitted are complete.

Offices that are responsible in the processing, reviewing and approving the claims for refund:

Processing OfficeReviewing OfficeApproving Official
RDOAssessment Division ADRegional Director RD
LTAD/ LTDOI-IREA – LTSACIR – LTS

 
3. Section 135-A of the Tax Code requires refund claims to be processed within 90 days from the date of submission of complete supporting documents. Offices must strictly follow this 90-day timeline, broken down as follows:

Regional and LTS Claim

ParticularsNumber of Days from Receipt of
Application
Claims with BIRClaims with BOC
Verification/Processing (RDO/ LTAD)6260
Review AD/ HREA – LTS88
Approval by RD/ ACIR-LTS55
Approval by RD/CIR of BOC Endorsement–2
Total No. of Days7575


Time Frame to Process Payment of Approved Excise Tax Refund Claims

Claims Filed and Processed at the Regional Offices

Processing OfficeNo. of Days after Approval of the Issuance of Refund
Finance Service/ Accounting Division8
Finance Division3
Administrative and Human Resource Management Division (AHRMD)2
Office of the Regional Director2
Total Number of Days15

                                                    Claims Filed and Processed at the LTS      

Processing OfficeNo. of Days after Approval of the Issuance of Refund
Finance Service/ Accounting Division10
Administrative Service5
Total Number of Days15

4. The Application/ Request Letter for Excise Tax refund shall state:

  1. The background of the claim;
  2. Legal and factual basis of the claim;
  3. The covered quarter period of the claim;
  4. The date or period of the sale; and
  5. All material details of the covered importation and sale of petroleum products, outlined in tabular form.

 
This claim shall be submitted with a complete BIR Form No. 1914, stating the covered quarter, legal basis, and claim amount from BIR and/or BOC. The reason for filing the claim shall be indicated under “Others” specifying thereof “Section 135 and 135-A of the Tax Code.”
 
5. The refund process shall be 90 days from the date of filing of complete documents in support of the application filed.
 
6.If the taxpayer has final and executory tax liabilities, the processing office shall inform the concerned Collection Division, and any approved refund may be applied to settle the outstanding obligations in accordance with existing laws and regulations. 

7. All claims for excise tax refund on petroleum products shall be made on a quarterly basis, aligned with the taxpayer’s accounting period.  8. All applications shall be accompanied with all documentary requirements outlined in Annex “A”. 

9. The taxpayer’s authorized representative must submit a Sworn Statement confirming that the excise tax refund was properly recorded as government receivables, supported by journal entries, not passed on to customers or recorded as expenses, and that all documents submitted are complete. 

 10. The taxpayer shall present in the excise tax refund summary (Annex “A-2”) the breakdown of transactions from initial purchase to the sale to customer. 

11. The taxpayer-claimant must submit monthly transcript sheets of Official Register Books (ORBs), including CSV soft copies, maintained at the production site or warehouse and available for BIR inspection. 

12. The result of the claim verification, whether approved or denied, shall be signed by the authorized revenue official and served by the processing office. If denied, the decision must include the legal and/or factual basis. 

Procedures

  1. Processing Office (RDO/LTAD)
  2. Check Listing: The assigned officer shall carefully review the accomplished BIR Form No. 1914 and accompanying application to ensure completeness, accuracy, and compliance with the prescribed requirements. All attached documents must bear the necessary signatures and sworn statements as indicated in the updated checklist. The officer shall also verify that the signatory is a duly authorized representative, supported by a valid Special Power of Attorney or Secretary’s Certificate. Once validated, the officer shall stamp “Received,” sign the relevant forms and annexes, and forward the complete documents to the Head of the Processing Office for issuance of the Memorandum of Assignment.
  3.  Issuance and service of Tax Verification Notice (TVN).

A separate Tax Verification Notice (TVN) shall be issued by the RDO or LTAD/LTDO specifically for the verification and validation of records supporting excise tax refund claims, distinct from regular tax audit activities. Upon receipt of the taxpayer’s application, the processing office shall record the details in the Tax Credit Refund (TCR) and Case Management System–Audit (CMS-A) modules under the Internal Revenue Integrated System (IRIS). The Head of the Processing Office shall then issue the TVN to formally authorize the conduct of verification and processing of the claim. The designated personnel shall serve the original copy of the TVN to the taxpayer-claimant and obtain acknowledgment of the duplicate copy from the authorized representative to ensure proper documentation and accountability.

  1. Verification and Reporting.

The Revenue Officer (RO) and Group Supervisor shall evaluate the excise tax refund claim to ensure the completeness and authenticity of all supporting documents, noting that any deficiencies may result in full or partial denial. They must also verify that the claim was filed within the prescribed two-year period from the date of tax or penalty payment.

Verify that the taxpayer is not listed as a CBL, validate proof of excise tax payment with BIR and BOC records, and secure necessary supporting documents from BIR databases.

Documents to be Verified/PrintedSource/s of Data/Information
Applicable Tax Return (BIR Form No. 2200-P and/or BIR Form No. 0605)eFPS and/or eBIR Forms or RDO for manual returns
BIR payment generated from the systemIRIS and/or ITS
Delinquency Verification CertificateFor TAD: LTCED and ARMD
For RDO: Collection Division of the Revenue Region

The assigned Revenue Officers (ROs) shall establish the applicable quarter and nature of the excise tax refund claim, determine the portions attributable to the BIR and BOC, and verify that the claimed amounts are accurately disclosed and recorded in the Audited Financial Statements (AFS) or other accounting records as receivables from the government. They must ensure that the refund claims are fully supported by corresponding journal entries covering the importation or manufacture of petroleum products up to their sale to tax-exempt entities and the filing of the refund application. Additionally, they shall confirm that the excise taxes were neither passed on to tax-exempt customers nor recorded as expenses. Upon completion of the review, the ROs shall prepare a comprehensive memorandum report recommending the approval or denial of the claim, supported by all necessary documents for evaluation by the Group Supervisor and Head of Office.

B. Reviewing Office (AD/Office of the HREA-LTS)
The RO-Reviewer, Group Supervisor, and Head of the Reviewing Office are tasked with validating the accuracy, legal basis, and completeness of excise tax refund claims. They review the memorandum report and, when necessary, return the docket to the Processing Office for revision or compliance. Once the review is completed and concurred, the assigned Revenue Officer (RO) prepares the corresponding Disbursement Voucher (DV), Budget Utilization Request and Status (BURS), and/or approval or denial letter, as applicable.

C. Approving Office (RD/ACIR-LTS)
The Approving Official oversees the final evaluation and disposition of excise tax refund claims. They are tasked to verify the accuracy of the legal basis, assess the propriety of the recommendation, and confirm the correctness of the amount recommended for approval or denial. Upon finding the report in order, the Approving Official shall sign the memorandum report, Disbursement Voucher (DV), Budget Utilization Request and Status (BURS), and the corresponding approval or denial letter, as applicable. Once approved, all signed documents are returned to the Processing Office for the personal service of the notice to the taxpayer-claimant.


D.  Processing and Issuance of excise tax refund Check for claims with BIR
The Accounting Division and Finance Service/Finance Division, under the Office of the Regional Director, shall process and approve the Disbursement Voucher (DV) and Budget Utilization Request and Status (BURS) for payment of the claim based on the approved report and supporting documents. Subsequently, the Administrative Service in the National Office or the AHRMD in the Regional Office shall prepare and release the refund check in accordance with existing accounting, auditing, and disbursement rules and regulations.

E. Transmittal of Docket of Approved Claim on Importations
The processing office shall send an advance confirmation via email at [email protected] before the transmittal of the approved claims to the BOC, indicating the following details:

Name of TaxpayerTINPeriod CoveredTax TypeAmount ApprovedApproving Official

The docket shall be endorsed to the BOC by the designated approving official, or by the Commissioner for LTAD/LTDO claims, and the assigned RO or authorized BIR personnel shall personally deliver the required documents to the BOC Commissioner for verification and processing.

  1. Letter of Endorsement to Commissioner of BOC;
  2. Authority to Issuae Excise Tax refund
  3. Excise Tax Refund Claim Evaluation Report;
  4. Schedule of Importations and
  5. Photocopies of Importation Documents

F. Reporting
Tax Refund Reports (TRR) shall be submitted to the Assessment Service, Attention: Chief, Assessment Programs Division, via email at [email protected], not later than the third (3rd) day of the succeeding month, in accordance with the prescribed procedures and existing revenue issuances.

G. Safekeeping of the Tax Docket
If the refund claim is approved, the complete tax docket shall be forwarded to the Commission on Audit (COA). For fully denied claims, the docket shall be transferred to the AHRMD (for regional claims) or the Records Management Division (for LTS claims) for filing and future reference.

To improve the identification and monitoring of excise tax payments under the proposed amendments to Revenue Regulations (RR) No. 2-1988, the following Alphanumeric Tax Codes (ATCs) are hereby created and dropped:

  1. The following ATC are hereby created:
ATCDescriptionTax RateLegal BasisBIR Form No.
XM021Non-Metallic Minerals4%RR No. 2-19882200-M
XM025Quarry Resources
  1. The following is hereby dropped:
ATCDescriptionTax RateLegal BasisBIR Form No.
XM020Non-Metallic Minerals and Quarry Resources4%RR No. 2-19882200-M