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

The Philippine Court of Tax Appeals Sept. 9 issued a decision in CTA Case No. 10689, clarifying input VAT refunds on zero-rated sales. The taxpayer, a VAT-registered manufacturer and exporter of automotive equipment, sought a refund of unutilized input VAT related to zero-rated export sales. The Commissioner of Internal Revenue partially denied it, citing lack of, or invalid, documentation. On appeal, the Court of Tax Appeals, Second Division, partially held for the taxpayer and ordered the Commissioner to pay an additional input VAT refund amount, finding that: 1) payment of taxes recorded in the VAT Payment Certification couldn’t be reasonably ...