Philippine Supreme Court Grants VAT Refund to PEZA Firm for External Purchases

• The Philippine Supreme Court ruled in favor of a PEZA-registered company regarding VAT refunds.
• PEZA companies are usually VAT-exempt but can claim input tax credits for purchases used outside the PEZA zone.
• The case involved Coral Bay, a company that exports nickel and cobalt mixed sulfide.
• Coral Bay sought a VAT refund for excess input tax credits.
• The BIR did not act on the refund claim, leading Coral Bay to appeal to the Court of Tax Appeals.
• The CTA’s Third Division granted the refund, but the CTA En Banc reversed it.
• Coral Bay appealed to the Supreme Court, which ruled in its favor.
• The Court decided that supplies used outside the PEZA zone are subject to VAT, allowing Coral Bay to claim a refund.

Source: answerconnect.cch.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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