Philippines Court of Tax Appeals Issues Decision Clarifying Input VAT Refunds on Zero-Rated Sales

The Philippine Court of Tax Appeals April 24 issued a decision in CTA Case No. 10413, clarifying input VAT refunds on zero-rated sales. The taxpayer, a company, sought an input VAT refund on zero-rated sales of services under Section 108(B)(2) of the National Internal Revenue Code (NIRC). The Commissioner of Internal Revenue (CIR) denied the taxpayer’s refund request for various reasons, including that the taxpayer failed to sufficiently prove that the services were rendered in the Philippines. The taxpayer appealed, arguing that the evidence adequately showed that the services were rendered in the Philippines. The Court of Tax Appeals, Second ...