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. EB 2919, clarifying input VAT refunds on zero-rated sales. The taxpayer, a VAT-registered renewable energy developer, sought a refund of VAT paid on local purchases that weren’t necessary for the development, construction, or installation of its energy facilities. The Commissioner of Internal Revenue denied the refund, stating that the taxpayer wasn’t the proper party to claim the refund and the input VAT wasn’t directly attributable to zero-rated sales. The Court of Tax Appeals, Special First Division, partially granted the taxpayer’s refund claim. Upon review, the ...