(NAR) VOL. 26 NO. 4/ OCTOBER - DECEMBER 2015
1. Monetization of Import VAT and VAT Drawback TCCs, outstanding as of 31 December 2012, which were approved for monetization pursuant to EO No. 68, series of 2012, and DOF-BOC-DBM Joint Circular No. 3-2012; andIII. OPERATIONAL PROVISIONS
2. Cash Conversion of all other VAT TCCs outstanding as of 31 December 2012, which are not covered by the immediately preceding subsection, and VAT TCCs issued after 31 December 2012.
1. After due notice from BOC, holders of VAT Drawback TCCs may apply for monetization and claim the corresponding cash equivalent of outstanding VAT TCCs as of 31 December 2012, subject to existing budgeting, accounting and auditing law, rules and regulations;
2. All VAT TCC holders who wish to avail the cash conversion program may apply at the Tax Credit Secretariat (“Secretariat”) with the submission of the following documents:
a. Letter of Application3. Upon submission of the complete documents needed to support the application, the Secretariat shall endorse the same to Financial Management Office (FMO) for verification of authenticity and balance of the TCC, subject of the request for cash conversion;
b. Original TCC;
c. Affidavit of the applicant, attesting that the TCC is authentic and that the amount thereof represents the remaining balance as of the date of the application; and
d. Secretary’s Certificate/Proof of Authority of Authorized Representative.
1. The release of the cash equivalent of Import VAT TCCs and Drawback TCCs shall be subject to availability of funds appropriated for the purpose.V. CLEARANCE OF NO OUTSTANDING LIABILITY
2. The procedure in budget execution shall be subject to existing budgeting laws, rules and regulations, in consultation with the DBM. TO initiate the implementation of the monetization and cash conversion program, the procedure prescribed under Customs Memorandum Order (CMO) No. 28- 2014, on cash refund of input VAT, is hereby adopted.
1. Claimants shall be required to secure a Clearance from the Collection Service attesting that subject importer-claimant has no outstanding liability with the BOC, which Clearance shall be submitted to the Secretariat before preparation of the Endorsement authorizing payment.VII. SUBMISSION OF QUARTERLY REPORTS
2. In cases where a particular claimant has determined liability/ies as borne by the records of the Collection Service, he shall be required to settle first his liabilities before his claim for VAT refund will be processed for payment.