Philippines Court of Tax Appeals Clarifies Refund for Excess, Unutilized Input VAT Regarding Zero-Rated Sales

The Philippine Court of Tax Appeals March 25 issued a decision in CTA Case No. 10920, clarifying an input VAT refund for excess and unutilized input VAT attributable to zero-rated sales. The taxpayer, a VAT-registered company, provided business process outsource solutions and call center services to its nonresident foreign affiliates. The taxpayer sought a refund of its excess and unutilized input VAT for Q1 2020, which were attributable to its zero-rated sales for the same quarter. The Bureau of Internal Revenue (BIR) sent the taxpayer a VAT refund notice only partially granting its VAT refund request. On appeal, the Court ...