Philippine Court of Tax Appeals Issues Decision Clarifying VAT Refund for Zero-Rated Transactions

The Philippine Court of Tax Appeals Feb. 19 issued a decision in CTA Case No. 10513, clarifying an input VAT refund assessment for zero-rated sales made to entities registered with the Board of Investments (BOI) and the Philippine Economic Zone Authority (PEZA). The taxpayer sought a refund of unutilized input VAT attributable to its zero-rated transactions. The Commissioner of Internal Revenue (CIR) denied the refund. On appeal, the Court of Tax Appeals, Third Division partially granted the taxpayer’s refund, because the taxpayer: 1) was a VAT-registered entity during the relevant time period; 2) made zero-rated sales to PEZA-registered entities; 3) ...