Philippine Court Upholds Denial of VAT Refund for Clinical Research Firm’s Zero-Rated Sales

• The Philippine Court of Tax Appeals issued a decision on input VAT refunds for zero-rated sales.
• A Philippine company involved in clinical research sought a refund for services provided to its UK-based affiliate.
• The Bureau of Internal Revenue denied the refund request.
• The taxpayer’s appeal to the Court of Tax Appeals, Special Second Division, was unsuccessful.
• The full bench of the Court of Tax Appeals upheld the denial.
• The court found the refund claim was filed incorrectly with a local office instead of the VAT Credit Audit Division.
• The transactions were not considered at arm’s length.
• The affiliate was deemed a resident foreign corporation doing business locally.

Source: news.bloombergtax.com

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