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

The Philippine Court of Tax Appeals June 30 issued a decision in CTA Case No. 10813, clarifying input VAT refunds on zero-rated sales. The taxpayer, a VAT-registered Netherlands regional headquarters of an office space provider, sought a refund of unutilized input VAT for 2018 related to zero-rated sales. The taxpayer argued that its sales of the services to a nonresident foreign corporation (NRFC) doing business outside the Philippines, were subject to a zero rating. The Commissioner of Internal Revenue denied the refund, citing failure to substantiate the administrative claim. On appeal, the Court of Tax Appeals, First Division, upheld the ...