Philippines Court of Tax Appeals Issues Decision Clarifying VAT Refund Rules

The Philippine Court of Tax Appeals Aug. 20 issued a decision in CTA Case No. 10725, clarifying the VAT refund rules. The taxpayer, a domestic AstraZeneca subsidiary, sought a VAT refund for amounts paid on prescription drugs imported in 2020. The taxpayer paid the VAT and subsequently filed an administrative claim for exemption based on a drug exemption that took effect Jan. 1, 2020. The Commissioner of Internal Revenue didn’t immediately act on the claim, and the taxpayer filed a court petition. On appeal, the Court of Tax Appeals, Second Division, found that: 1) the Philippine Food and Drug Administration ...