The Bureau of Internal Revenue (BIR) has released comprehensive supplemental guidelines for businesses seeking excise tax refunds or credits on unused internal revenue stamps for tobacco and vaping products. This significant update provides much-needed clarity for manufacturers and distributors navigating the complex tax landscape.
New Guidelines for Tax Refund Eligibility
Revenue Memorandum Circular 94-2025, issued on September 24, 2025, establishes clear parameters for which unused stamps qualify for excise tax refunds or credits. The circular specifies that applications apply to unused, factory-defective, spoiled, or bad order internal revenue stamps that remain completely intact and have never been affixed to any tobacco or vape product.
According to the new regulations, refund or credit is permitted under four specific circumstances. These include unused stamps resulting from product cancellations, reclassification, or production issues. The guidelines also cover bad order stamps surrendered beyond the prescribed period under Revenue Regulations 18-2021, along with factory-defective stamps that were paid for but never released to the taxpayer.
Additionally, the BIR will accept claims for approved replacements of defective or spoiled stamps that remain unreleased. A crucial requirement states that only original stamps in good condition with functioning QR codes, unique identifier codes, and intact security features will be considered for refund processing.
Documentary Requirements and Application Process
Taxpayers intending to claim refunds or tax credits must prepare extensive documentation and submit everything to their respective Revenue District Office. The requirements include three original copies of the duly accomplished BIR Form 1914 application for tax credit or refund.
Applicants must also provide a formal letter addressed to the Commissioner of Internal Revenue that clearly states the legal basis, facts, and circumstances justifying their claim. This should be accompanied by a copy of the duly filed tax return related to the tax credit or refund, complete with proof of payment.
Other essential documents include an original copy of the duly notarized taxpayer's attestation and a notarized secretary's certificate or special power of attorney authorizing representatives to file and process the claim. The package must also contain a delinquency verification certificate from the appropriate Collection Division and a Notice to Proceed issued by the Excise Large Taxpayers Field Operations Division.
Securing the Notice to Proceed
Obtaining the crucial Notice to Proceed requires additional documentation. Taxpayers must present unused or bad order stamps arranged in specific rows and columns on sheets provided by APO Production Unit Inc. They must also secure certification from APO or the Large Taxpayers Service, depending on their situation.
The application package must include the original copy of the excise tax return (BIR Form 2200-T) and proof of payment previously filed for stamp procurement. Finally, applicants need to provide a copy of the Order Reference Number issued through the Enhanced Internal Revenue Stamp Integrated System, properly authenticated by the Eltfod.
Important Deadlines and Processing Timeline
The BIR has established strict deadlines for submitting refund applications. Taxpayers must file their claims within two years from the date of excise tax payment, providing a clear window for businesses to organize their documentation and submit complete applications.
Once submitted with all required documents, the BIR commits to processing tax refund or credit applications within 180 days. The circular also mandates that all surrendered stamps must be destroyed under the supervision of the Excise Large Taxpayers Field Operations Division, with a signed destruction report completing the process.
Revenue Memorandum Circular 94-2025 took effect immediately upon its September 24, 2025 release date, providing current guidance for all tobacco and vape product manufacturers and distributors operating in the Philippines.
