Philippine Court Denies VAT Refund for Netherlands Firm Due to Insufficient Documentation

• The Philippine Court of Tax Appeals issued a decision on input VAT refunds for zero-rated sales.
• A Netherlands regional headquarters sought a refund for unutilized input VAT for 2018.
• The taxpayer claimed its services to a nonresident foreign corporation were zero-rated.
• The Commissioner of Internal Revenue denied the refund due to lack of substantiation.
• The Court of Tax Appeals upheld the denial for two reasons.
• The taxpayer did not prove the sales were zero-rated as invoices lacked service details.
• The taxpayer failed to show sales were paid in acceptable foreign currency per central bank rules.

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.

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