Philippine Court Affirms Denial of VAT Refund Due to Insufficient Evidence of Zero-Rated Sales

• The Philippine Court of Tax Appeals issued a decision on input VAT refunds for zero-rated sales.
• A Swiss group’s VAT-registered regional headquarters requested a refund for unutilized input VAT for Q1 and Q2 of 2018.
• The Commissioner of Internal Revenue denied the request due to lack of substantiation.
• The taxpayer’s appeal to the Court of Tax Appeals, Special Third Division, was unsuccessful.
• The Court of Appeals, en banc, affirmed the decision.
• The taxpayer failed to prove the details of the offsetting arrangement with Swiss group affiliates.
• The Schedule of Offsetting of Receivables was not given probative value due to being in a different language.

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.