- Supreme Court ruled that fees received by taxpayer from foreign shipping companies for manning vessels were subject to 0% VAT
- Tax authority argued that taxpayer’s activities made shipping companies engaged in business in the Philippines
- Court disagreed, stating that shipping companies had no control over taxpayer’s business operations
- Therefore, fees paid to taxpayer by shipping companies were entitled to VAT zero-rating
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
