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

The Philippine Court of Tax Appeals April 3 issued a decision in CTA Case No. EB 2839, clarifying input VAT refunds on zero-rated sales. The taxpayer, a Philippine company engaged in clinical research, sought a refund of input VAT on zero-rated sales of services rendered to its legally distinct affiliate tax resident in the U.K. The affiliate wasn’t registered in the Philippines, and was the taxpayer’s sole customer. The Bureau of Internal Revenue denied the refund. The taxpayer unsuccessfully appealed to the Court of Tax Appeals, Special Second Division. On the further appeal, the full bench of the Court of ...