Supreme Court Rules PEZA Firms Partially Liable for VAT on Goods Consumed Outside Ecozone

• The Supreme Court ruled that PEZA-registered companies are not fully exempt from VAT for goods and services consumed outside the ecozone but within the Philippines.
• Coral Bay Nickel Corp. sought a VAT refund for purchases used beyond the ecozone, initially granted partially by the Court of Tax Appeals.
• The CTA en banc reversed the decision, treating Coral Bay as fully VAT-exempt due to tax incentives under Republic Act 7916.
• The Supreme Court disagreed, stating that VAT exemption does not include goods consumed outside the ecozone.
• PEZA-registered companies are entitled to zero-rated VAT only for goods or services consumed within the ecozone.
• Goods consumed outside the ecozone are subject to VAT, and Coral Bay is entitled to a refund only for proven consumption outside the ecozone.

Source: manilatimes.net

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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