The Philippine Court of Tax Appeals (CTA) issued a decision on Jan. 7 clarifying that a VAT deficiency assessment is void if the preliminary assessment notice (PAN) and formal letter of demand (FLD) lack the required annexes detailing the factual basis of the findings. The ruling applies to a domestic corporation’s assessment covering July 1 2013‑June 30 2014, underscoring the importance of proper documentation in BIR assessments.
The CTA ruled that such assessments are void if the preliminary assessment notice and formal letter of demand lack required annexes detailing the factual basis of the findings.
The decision concerns a domestic corporation’s VAT deficiency assessment for the period July 1 2013 to June 30 2014.
The decision was issued on Jan. 7, 2026.
They must include annexes specifying the factual bases of the findings.
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Manila Times · about 1 hour ago
The article discusses recent Supreme Court rulings and a BIR circular that simplify VAT zero‑rating and refund procedures for renewable energy developers in the Philippines. It explains that developers no longer need a DOE COE or an ERC COC, and that local suppliers no longer must file zero‑rating applications. The piece also outlines the conditions under which input VAT can be refunded and advises developers to maintain proper registration certificates.
Bloomberg Tax · about 4 hours ago
The Philippine Court of Tax Appeals issued a decision on Jan. 19, 2026 (Case No. 10607) clarifying the validity of assessments for alleged tax deficiencies. The ruling covers a range of taxes—including income tax, VAT, expanded withholding tax, and others—and finds that due process was not violated because the Final Decision on the Disputed Assessment (FDDA) stated the relevant facts. The decision provides guidance on how assessments are evaluated for due process compliance.
Bloomberg Tax · 1 day ago
The Philippine Court of Tax Appeals issued a decision on Jan. 16, 2026 in CTA Case No. 10570, ruling that yearbook printing is VAT‑exempt because yearbooks qualify as books under Philippine law. The ruling invalidated the Commissioner of Internal Revenue’s assessments for deficiency income tax and VAT for the taxable year 2013, which had been based on BIR Ruling No. 421‑2013. The decision clarifies the validity of such assessments and the treatment of yearbook sales for VAT purposes.
Manila Times · 7 days ago
The Manila Times opinion piece explains how the Supreme Court’s February 4 2025 ruling in the Subic Bay Freeport case clarified that domestic market enterprises (DMEs) are entitled to VAT zero‑rating under the Create Act, overturning earlier BIR issuances that excluded them. It also outlines the conditions under which DMEs can still claim the benefit under the newer Create More law, namely high‑value DMEs with significant investment capital or export sales, and stresses that purchases must be directly attributable to the registered project. The article advises businesses in freeports and ecozones to update their ERP systems, document eligibility, and align procurement processes to avoid disputes.
Grant Thornton · 17 days ago
The Philippine Bureau of Internal Revenue’s RMC 108-2025, issued on 8 January 2026, expands the list of VAT‑exempt drugs under the TRAIN and CREATE Acts. The new list now covers 675 cancer drugs, 542 hypertension drugs, 323 diabetes drugs, 300 mental‑illness drugs, 173 high‑cholesterol drugs, 154 kidney‑disease drugs and 75 tuberculosis drugs, significantly broadening patient access to essential medicines.
The Guardian · 3 days ago
The OECD’s economic survey of Australia urges the Albanese government to broaden the GST and consider raising the rate above 10%, using the proceeds to reduce reliance on personal income tax. It also recommends replacing stamp duties with a land tax and boosting social housing funding. The report estimates the reform would add 1.6% to Australia’s GDP over a decade.
