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

The Philippine Court of Tax Appeals May 29 issued a decision in CTA Case No. 10574, clarifying input VAT refunds on zero-rated sales. The taxpayer, a VAT-registered company, sought a refund of its unutilized input VAT for Q4 2018. The taxpayer argued that it complied with all applicable elements, as well as that the disallowances and claims of output VAT on its transactions lacked a factual and legal basis. The Commissioner of Internal Revenue (CIR) denied the taxpayer’s request, contending that it failed to substantiate its administrative refund claim. Upon review, the Court of Tax Appeals, Second Division, partially granted ...