CTA Clarifies Invoice Requirements for Input VAT Refunds on Zero-Rated Sales

The Philippine Court of Tax Appeals ruled on invoice requirements for input VAT refunds on zero-rated sales.
A freight and cargo company sought a refund of unused input VAT on zero-rated sales to nonresident foreign companies.
The Bureau of Internal Revenue disallowed the refund.
The Court of Appeals upheld the Tax Agency’s rejection of the refund claim.
The court found that the taxpayer did not comply with invoicing requirements.
The court cited three reasons for the noncompliance:
Some official receipts were dated outside the quarter or validity period.
Other receipts contained errors or did not state the nature of services.
Certain sales lacked receipts registered with the Tax Agency.

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.