On 21 January 2026 the Philippine Court of Tax Appeals issued CTA Case No. 10505, clarifying that unutilized input VAT refunds on zero‑rated sales must be substantiated with an administrative refund claim and proof of entitlement. The decision confirms that the Internal Revenue Commissioner’s denial of a 2018 excess input VAT refund was based on the taxpayer’s failure to meet these requirements.
It clarified that such refunds require a substantiated administrative refund claim and proof of entitlement, and that the CIR’s denial was based on the taxpayer’s failure to meet these requirements.
The taxpayer sought a refund for excess input VAT related to the taxable year 2018.
The Court upheld the CIR’s denial, stating the taxpayer had not provided sufficient evidence to support the refund claim.
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The Invoicing Hub · 7 days ago
The Philippines will require structured e‑invoicing for large taxpayers and e‑commerce businesses from 1 January 2027, with the first phase of the mandate taking effect on 31 December 2026. The requirement is based on the TRAIN Law and BIR Revenue Regulation 011‑2025, but specific structured formats have yet to be defined. A second phase is expected later in 2027 to extend the mandate to all businesses and mandate transmission via a central platform.
Tribune · 30 days ago
The city of San Fernando, Pampanga, Philippines has announced that water bills will no longer carry the 12% Value-Added Tax (VAT) starting March 2026. Residents will receive full refunds for VAT collected between 17 November 2025 and February 2026. The measure, announced by Mayor Vilma B. Caluag, aims to reduce household costs and ease living burdens.
Bloomberg Tax · about 1 month ago
The Philippine Court of Tax Appeals issued a decision on Feb. 10, 2026 (CTA Case No. 10561) clarifying the validity of assessments for alleged tax deficiencies. The case involved a domestic corporation claiming entitlement to a 5 % preferential gross income tax rate and a 12 % VAT exemption, arguing that the Commissioner of Revenue had incorrectly applied a 30 % threshold for income from Philippine sources outside the Subic Special Economic and Freeport Zone. The court examined whether the sales in question were within the zone and the implications for the tax assessments.
Bloomberg Tax · about 1 month ago
On Feb. 2, 2026 the Philippine Court of Tax Appeals ruled that renewable‑energy developers registered with the Department of Energy may zero‑rate purchases and claim input VAT refunds on zero‑rated sales of fuel or power from renewable sources, provided they satisfy substantiation and invoicing requirements. The decision clarified that the Commissioner’s earlier denial was due to missing documentation.
Deloitte Southeast Asia · about 1 month ago
The article discusses the impact of the Philippines’ 12% VAT on households and the economy, and examines Senate Bill 1152’s proposal to reduce the rate to 10%. It highlights the fiscal implications, including a projected revenue loss of about P330 billion from 2026 to 2030, and the broader effects on consumer spending and government finances.
Bloomberg Tax · about 1 month ago
The Philippine Court of Tax Appeals (CTA) issued a decision on Jan. 23, 2026 (Case No. 10626) clarifying the treatment of unutilized input VAT refunds on zero‑rated export sales. The decision addresses the denial by the Commissioner of Internal Revenue, which was based on a failure to substantiate the claim and invoices not covered by the approved Permit to Use Computerized Accounting System (PTUCAS).
