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

The Philippine Court of Tax Appeals July 3 issued a decision in CTA Case No. 10609, clarifying input VAT refunds regarding zero-rated sales. The taxpayer, a Singapore-based company, was licensed to establish a branch office in the Philippines to pursue geothermal aerated drilling services. The taxpayer sought a refund of creditable input VAT paid, attributable to its zero-rated sales for Q1 2019. The taxpayer argued that it was entitled to the refund claim for various reasons, including that it established rendering services subject to a zero percent VAT rate and substantiated the claim with relevant supporting documents. The Commissioner of ...