Philippines BIR targets online VAT refund launch by 2027

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Philippines online VAT refund 2027

Highlights

The Bureau of Internal Revenue aims to launch its Online Application for VAT Refund system by 2027, delaying full automation beyond the original 2026 target.
The BIR's revised strategic plan postpones final onboarding of VAT taxpayers to the Electronic Invoicing System until 2028, versus the previous 2026 timeline.
The agency aims to increase tax information requests from foreign treaty partners by 30% in 2026, 40% in 2027, and 50% in 2028.

Revised digital tax timeline

As reported by BusinessWorld Online, Revenue Memorandum Order No. 27-2026 sets out the Bureau of Internal Revenue's 2026-2028 strategic plan, including an electronic platform for VAT refund applications. The proposed system is intended to accept supporting documents online and let applicants track the status of their claims.

The Online Application for VAT Refund system is designed to mostly automate refund processing. However, the updated timetable indicates delays from the agency's earlier 2024-2028 plan, which had aimed for full automation of VAT refund processing by 2026 under the Electronic Invoicing System program.

For 2026, the revised plan calls for approval of amendments to the Project Procurement Management Plan and the terms of reference for the proposed system. The BIR also plans to submit procurement documents, including the approved budget for the contract, to its Bids and Awards Committee within the year.

Wider operational targets

The agency also revised the timetable for its Electronic Invoicing System, now targeting the final phase of taxpayer onboarding by 2028 to cover the remaining VAT taxpayers. In the earlier version of the strategic plan, the BIR had sought to expand the system to all VAT-registered taxpayers by 2026.

Beyond digitalization, the BIR is seeking to increase requests for tax information from foreign treaty partners by at least 30% in 2026, 40% in 2027 and 50% in 2028. It also lowered its target for filling vacant plantilla positions to 80% from the previous 90%, while adopting a recommendation to stop seeking an exemption from the Salary Standardization Law because that step depends on legislative approval.

RMO No. 27-2026, dated May 14, updates the earlier 2024-2028 strategic plan under RMO No. 35-2024.

Our earlier report on the Philippine peso’s dip against the US dollar detailed how risk-off sentiment, Middle East tensions, and weaker foreign direct investment (FDI) inflows weighed on the currency. It also noted that traders were positioning ahead of key US inflation data and potential Federal Reserve signals, which could influence near-term peso trading ranges.

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