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

The Philippine Court of Tax Appeals April 15 issued a decision in CTA Case No. 10464, clarifying input VAT refunds on zero-rated sales. The taxpayer, a mining company, sought an input VAT refund on export sales it argued were zero-rated under Section 110 of the National Internal Revenue Code. The Bureau of Internal Revenue denied the refund, and the taxpayer appealed. The Court of Appeals denied the appeal, finding that: 1) the refund claim was timely and the taxpayer was VAT-registered; 2) the zero-rated export sale criteria weren’t met, however, where sales invoices didn’t state “zero-rated” or the bill of ...