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

The Philippine Court of Tax Appeals June 3 issued a decision in CTA EB No. 2897, clarifying input VAT refunds on zero-rated sales. The taxpayer, a Swiss group’s VAT-registered regional headquarters, sought a refund of unutilized input VAT for Q1 and Q2 of 2018. The Commissioner of Internal Revenue denied the request for failure to substantiate the administrative claim. The taxpayer unsuccessfully appealed to the Court of Tax Appeals, Special Third Division, which found a failure to show zero-rated sales of services under the National Internal Revenue Code. Upon review, the Court of Appeals, en banc, affirmed the decision, finding ...