REVENUE MEMORANDUM ORDER NO. 42-2024 issued on October 2, 2024, amends certain provisions of RMO No. 23-2024 regarding VAT refund claims automatically considered as high-risk or requiring full verification, in relation to the risk- based approach in the verification and processing of Value- Added Tax (VAT) refunds.

Section II (1) of RMO No. 23-2024 is amended to include applications with incomplete or missing information (e.g., no reference details, incomplete/no transaction details, etc.) on the schedules of sales and purchases (following the prescribed format) among the VAT refund claims considered as high-risk or shall require full verification.

The enumeration of VAT refund claims in Section II (1) of RMO No. 23-2024 shall not be considered exclusive. Other cases may be considered as high-risk claims as determined by the Commissioner of Internal Revenue based on reasonable criteria (e.g. relevant risk factors not otherwise captured in the risk matrix under item 2 of this Section). These shall be covered by a separate revenue issuance.