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

The Philippine Court of Tax Appeals Nov. 20 issued a decision in CTA EB No. 3102, clarifying unutilized input VAT refunds regarding zero-rated sales. The taxpayer, a domestic corporation, was partially granted a refund of excess and unutilized input VAT attributable to its zero-rated sales for Q1-Q4 of the fiscal year (FY) ending March 2019. The Commissioner of Internal Revenue (CIR) challenged the lower court’s decision, contending that the lower court erred in partly granting the taxpayer’s refund request. On appeal, the Court of Tax Appeals, en banc, found that: 1) the lower court had jurisdiction because the taxpayer filed ...