Philippines Court of Tax Appeals Clarifies VAT Refunds for Zero-Rated Transactions

The Philippine Court of Tax Appeals April 11 issued a decision in CTA Case No. EB 2799, clarifying VAT refunds for zero-rated transactions. The taxpayer, a VAT-registered company, registered its established facility with the Bureau of Internal Revenue (BIR), but didn’t register it with the Philippine Economic Zone Authority (PEZA). The taxpayer sought a refund of unutilized input VAT attributable to its zero-rated transactions for Q1 2017. The BIR denied the refund, citing violations of invoicing requirements and the VAT-registration of the facility, as a branch. The taxpayer unsuccessfully appealed to the Court of Tax Appeals, Special Third Division. Upon ...