Philippines Court of Tax Appeals Issues Decision Clarifying Input VAT Refunds for Specified Licensees

The Philippine Court of Tax Appeals Oct. 28 issued a decision in CTA EB Nos. 2976 and 2980, clarifying input VAT refunds for Philippine Amusement and Gaming Corporation (PAGCOR) licensees. The taxpayer, a PAGCOR-licensed casino operator, sought an input VAT refund on domestic purchases and nonresident services, claiming exemption under the PAGCOR Charter. The Bureau of Internal Revenue partially granted the claim, allowing a refund only for VAT on imported non-capital goods. On appeal, the Court of Tax Appeals, en banc, found that: 1) PAGCOR licensees are exempt from both direct and indirect taxes; 2) VAT directly paid on importations ...