FLOWCHART OF TAX REFUND REMEDIES

I. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE

VAT Refund/Credit (Section 112, NIRC) – RA 8424
2 Years 120 Days 30 Days

ADMINISTRATIVE CLAIM Period to decide JUDICIAL CLAIM

Mandatory & Jurisdictional

TWO OPTIONS OF TAXPAYER:

A. Denial

File Administrative claim

Close of the Taxable
with the CIR and submit
Quarter where the From receipt of Petition
complete documents (OR’s,
relevant sale was made the decision for
invoices, and other
documents) denying the claim; Review
state the legal and with CTA
factual basis in Division
ATLAS Ruling: From
writing
6/8/07-9/12/08- Close of
the Taxable Quarter B. Inaction
counted from the date of
filing of the VAT return
and payment of the tax.
Lapse of 120 day Petition for
period Review with
Considered a denial CTA Division
 VAT Refund/Credit (Section 112, NIRC) – TRAIN LAW
2 Years 90 Days 30 Days

ADMINISTRATIVE CLAIM Period to decide JUDICIAL CLAIM

Mandatory & Jurisdictional

TWO OPTIONS OF TAXPAYER:

A. Denial
File Administrative claim
Close of the Taxable with the CIR and submit
Quarter where the complete documents (OR’s, From receipt of Petition
relevant sale was made invoices, and other the decision for
documents) denying the claim; Review
state the legal and with CTA
factual basis in Division
ATLAS Ruling: From
writing
6/8/07-9/12/08- Close of
the Taxable Quarter B. Inaction
counted from the date of
filing of the VAT return
and payment of the tax.
Lapse of 90 day Petition for
period Review with
NOTE: CTA Division
- When to file quarterly return for VAT: within 25 days following the close of each
taxable quarter prescribed for each taxpayer.
- When payment of the VAT: monthly basis
- Premature filing is allowed only if filed between 10/12/03 and 5/12/10
- Late filing is absolutely prohibited
- Beginning Jan. 1, 2023: the filing and payment required under the TRAIN Law shall be done within 25 days following the close of each taxable quarter.
II. REMEDIES UNDER THE NATIONAL INTERNAL REVENUE CODE

Recovery of Erroneously or Illegally Collected Taxes and/or Penalties (Section 229, NIRC)

2 Years

BOTH ADMINISTRATIVE CLAIM & JUDICIAL CLAIM

Actual Date of Payment Petition for

or Withholding of Review with
Tax CTA Division

File Administrative
Claim with CIR
(Before Judicial
Claim)

NOTE:

1. The claim for Refund must be filed within 2 years from payment;
2. The appeal to the CTA must likewise be filed within the same 2-year period.
III. REMEDIES UNDER THE LOCAL GOVERNMENT CODE

2 Years

BOTH ADMINISTRATIVE CLAIM & JUDICIAL CLAIM

Appeal to either MTC or RTC

Actual Date of Payment  Follow procedures on the
next page

File claim for refund before the

Local Treasurer

NOTE:

Both the administrative and the judicial claim must be filed within the two-year period.
 1. If ≤ P300,000 (or ≤ P400,000 for Metro Manila)

15 Days 15 Days 30 Days

Denial by Petition
Appeal Appeal
Local Treasurer or for
to MTC to RTC
Lapse of Review
60 days tothe
CTA en
banc

The period to
2. If ˃ P300,000 (or ˃ P400,000 for Metro Manila) appeal shall be interrupted
15 Days 30 Days by a timely motion for new
trial or reconsideration. In
any case, if the motion is
denied, the movant has a
fresh period of 15 days
from receipt or notice of
Denial by order denying or dismissing
Appeal Petition
Local Treasurer or the motion for
to RTC for
Lapse of reconsideration within
60 days Review
tothe which to file the appeal.
CTA division (Neypes Doctrine)
IV. REMEDIES UNDER THE REAL PROPERTY TAX

2 Years 60 Days

ADMINISTRATIVE CLAIM Period to decide

Actual Date of Payment If denied or inaction by the Local

File claim for refund before the Treasurer, follow procedures
Local Treasurer below.

60 Days 120 Days 30 days 30 Days

Denial by Denial by Adverse

Appeal Appeal Petition
Local LBAA or decision of
to LBAA to CBAA for
Treasurer or Lapse of CBAA
Lapse of Review
120 days tothe
60 days
CTA en
banc
NOTE:
Only the administrative claim must be filed within the two-year period
IV. REMEDIES UNDER THE CUSTOMS MODERNIZATION AND TARIFF ACT.

1. If the claim and application is for refund of duties.

12 Months 30 Days 30 Days 30 Days

ADMINISTRATIVE CLAIM

Actual Date of Payment File claim with the Petition

Bureau Denied: Appeal to Denial by
the COC for
the COC Review to
The CTA
Division

NOTE:

Only the administrative claim must be filed within the 12-month period. The CMTA did not specify the office within
which to file the claim for refund.
 2. If the claim and application is for refund of taxes.

Recovery of Erroneously or Illegally Collected Taxes and/or Penalties (Section 229, NIRC)

2 Years

BOTH ADMINISTRATIVE CLAIM & JUDICIAL CLAIM

Actual Date of Payment Petition for

or Withholding of Review with
Tax CTA Division

File Administrative
Claim with CIR
(Before Judicial
Claim)

Note:
- The Bureau of Customs shall cause the refund of internal revenue taxes after issuance of a certification from the CIR granting claim for
refund, whether wholly or partially.
- Both the claim for Refund and appeal to the CTA must be filed within the same 2-year period.