CTA Clarifies Input VAT Refund for Zero-Rated Sales to Nonresidents

• The Philippine Court of Tax Appeals ruled on a case involving input VAT refund assessment.
• The taxpayer provided zero-rated services to nonresident entities.
• The taxpayer sought a refund of unutilized input VAT.
• The Court of Appeals partially granted the taxpayer’s refund request.
• The Court found that the taxpayer had unutilized input VAT attributable to zero-rated services.
• The taxpayer was a VAT-registered entity and complied with invoicing requirements.
• The taxpayer timely filed its claim.
• The taxpayer engaged in both VAT-taxable and zero-rated sales, requiring input VAT apportionment.

Source: news.bloombergtax.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.