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

The Philippine Court of Tax Appeals on May 21 issued a decision in CTA Case No. 10880, clarifying input VAT refunds on zero-rated sales. The taxpayer, a mining company, sought a refund of unutilized input VAT on zero-rated or effectively zero-rated sales. The Commissioner of Internal Revenue partially denied the refund on the grounds of failure to substantiate the claim at the administrative level. Upon review, the Court of Tax Appeals partially granted the taxpayer’s petition for review, finding in part that: 1) the taxpayer’s administrative and judicial claims were timely under the National Internal Revenue Code of 1997, and ...