Philippines Court of Tax Appeals Issues Decision Clarifying Input VAT Refunds Attributable to Zero-Rated Sales

The Philippine Court of Tax Appeals Aug. 13 issued a decision in CTA Case No. 10752, clarifying refunds of unutilized creditable input VAT attributable to zero-rated sales. The taxpayer, a Singapore-based company engaged in geothermal aerated drilling services, sought a refund of unutilized creditable input VAT attributable to its zero-rated sales for the second half of 2019. The taxpayer argued that it rendered services subject to zero-rated VAT and that it substantiated its claim with relevant supporting documents. The Commissioner of Internal Revenue (CIR) disagreed, contending that the taxpayer’s claim wasn’t fully substantiated. On appeal, the Court of Tax Appeals, ...