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

The Philippine Court of Tax Appeals Sept. 1 issued a decision in CTA EB No. 2913, clarifying input VAT refunds on zero-rated sales. The taxpayer, a company selling electricity to the National Power Corporation, sought a refund of unutilized input VAT. The Bureau of Internal Revenue (BIR) partially denied the claim, citing insufficient evidence. The taxpayer appealed to the Court of Tax Appeals, Special Second Division, which granted the refund based on Certificates of Compliance, which the Commissioner of Internal Revenue argued hadn’t been offered as evidence. Upon review, the Court of Appeals, en banc, held that: 1) the certificates ...