Philippine Court of Tax Appeals Clarifies Invoice Requirements for Input VAT Refunds on Zero-Rated Sales

The Philippine Court of Tax Appeals Feb. 27 issued a decision in CTA Case No. 10416, clarifying invoice requirements for input VAT refunds on zero-rated sales. Taxpayer, a freight and cargo company, sought a refund of unused input VAT on zero-rated sales to nonresident foreign companies under Section 108(B)(2) of the National Internal Revenue Code (NIRC) of 1997. The Bureau of Internal Revenue disallowed the refund for lack of a factual or legal basis. On the taxpayer’s petition for review, the Court of Appeals upheld the Tax Agency’s rejection of taxpayer’s refund claim.