Claim for refund of unutilized input VAT

SECTION 112 of the Tax Code (Republic Act [RA] 8424, as amended) states that a taxpayer may claim for refund or request for issuance of tax credit certificate for its excess unutilized input value-added tax (VAT).

In computing VAT, the input tax (the VAT due or paid by the taxpayer from the purchase of goods or services) is credited against the output tax (the VAT due on the sale of goods or services paid to the taxpayer). If at the end of the taxable quarter, the output tax exceeds the input tax, then such excess shall be paid by the taxpayer. Alternatively, if the input tax exceeds the output tax, such input tax may be carried over to the succeeding quarters.