Claim for Tax Credit/Refund for Alleged Excess Input tax by VAT-Registered Firm Denied

October 15, 1993 BIR RULING NO. 415-93 CLAIM FOR TAX CREDIT/REFUND FOR ALLEGED EXCESS INPUT TAX BY VAT-REGISTERED FIRM DENIED 104 106 000-00 415-93 The Honorable Undersecretary Tomas I. Alcantara Department of Trade and Industry 385 Sen. Gil Puyat Avenue Makati, Metro Manila This refers to your request for confirmation and/or issuance of guidelines for the automatic offsetting of claims for VAT input tax by mining companies against their excise tax liabilities. cdt I reply, I regret to inform you that the same cannot be granted for lack of legal basis. Any claim for tax credit or refund of alleged excess input tax by a VAT registered taxpayer pursuant to Sections 104 and 106 both of the Tax Code, as amended by E.O. 273, shall be subject to verification by this Office pursuant to existing rules and regulations. Accordingly, until after the amount claimed as input taxes attributable to goods exported, or on sales which are zero-rated or effectively zero-rated or input tax paid on capital goods imported or locally purchased, to the extent that such input taxes have not been applied against output taxes, have been finally determined to be legally due to the taxpayer, and a tax credit certificate issued therefor, no automatic offsetting of the amount claimed as input tax against the tax liability of the taxpayer can be allowed. However, a Tax Credit Certificate duly issued by this Office shall, upon proper application, be allowed to be used in payment of excise and other tax liabilities of taxpayers, like the mining companies. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue