Philippines Court of Tax Appeals Issues Decision Clarifying Refunds on Erroneously Paid VAT

The Philippine Court of Tax Appeals Oct. 21 issued a decision in CTA Case No. 10773, clarifying refunds on erroneously paid VAT. The taxpayer, a VAT-registered corporation, sought a refund on erroneously paid VAT regarding its importation of prescription drugs and medicines for diabetes and hypertension. The taxpayer argued that the drugs and medicines were VAT-exempt. The Commissioner of Internal Revenue argued insufficient documentation and failure to exhaust administrative remedies. On review, the Court of Tax Appeals, Second Division, found that: 1) the taxpayer did pay VAT on prescription drugs and medicines listed as VAT-exempt; 2) the taxpayer, however, failed ...