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

The Philippine Court of Tax Appeals Feb. 2 issued a decision in CTA Case Nos. 9455, 9500, 9529, and 9555, clarifying input VAT refunds on zero-rated sales. The taxpayer, a renewable energy (RE) developer, sought a refund of unutilized input VAT attributable to zero-rated sales of fuel or power from renewable sources. The Commissioner of Internal Revenue denied the claim, finding failure to meet substantiation and invoicing requirements. On appeal, the Court of Tax Appeals, Special Second Division, found that the taxpayer: 1) was entitled to zero-rating on purchases as an RE developer registered with the Department of Energy and ...