BIR targets 2027 launch for online VAT refund application system

The Bureau of Internal Revenue plans to launch an online value-added tax refund application system by 2027, later than the 2026 target in its previous strategic plan. The system will accept supporting documents and let applicants track claim status.

The Bureau of Internal Revenue (BIR) said it will launch an online value-added tax (VAT) refund application system by 2027. Revenue Memorandum Order (RMO) No. 27-2026 outlines the BIR strategic plan for 2026-2028, which includes the development of an electronic VAT refund application platform that will accommodate the submission of supporting documents and allow applicants to monitor the status of their claims.

The Online Application for VAT Refund system is designed to mostly automate the processing of refund applications. The timeline signifies some slippage in its 2024-2028 strategic plan, in which the BIR had targeted the full automation of VAT refund processing by 2026 under its Electronic Invoicing System (EIS) program.

For this year, the revised plan calls for the approval of amendments to its Project Procurement Management Plan and the terms of reference for the proposed system. The BIR also plans to submit the necessary procurement documents, including the approved budget for the contract, to its Bids and Awards Committee within the year.

The agency also adjusted its timetable for the EIS, targeting the final phase of taxpayer onboarding by 2028, covering the remaining VAT taxpayers. In the earlier version of the strategic plan, the BIR had aimed to expand the EIS to accommodate all VAT-registered taxpayers by 2026.

The BIR is also seeking to grow the volume of requests for tax information from foreign treaty partners by at least 30 per cent in 2026, 40 per cent in 2027 and 50 per cent in 2028. These targets were retained from its earlier strategic plan.

In terms of staffing, the BIR lowered its target to fill 80 per cent of vacant plantilla positions from the previous 90 per cent target in the 2024-2028 plan. A recommendation to no longer seek an exemption from the Salary Standardization Law was adopted in the revised plan “due to its dependence on legislative approval.” RMO No. 27-2026, dated May 14, updates the earlier 2024-2028 strategic plan under RMO No. 35-2024.