THE Court of Tax Appeals (CTA) partially granted the petition of Vestas Services Philippines, Inc., allowing the amount of P134.3 million of its claims to be refunded.
In a decision dated Sept. 20, the court’s second division said the service providing firm was able to prove its refund claim for the amount of P134.3 million representing its unutilized excess input value-added tax (VAT) attributable to zero-rated sales for the second quarter of 2014.
“Finally, it was established that the input VAT of P134,298,376.32 was not carried-over nor applied against any output VAT in the succeeding quarters,” the decision read.
“In fine, petitioner has sufficiently proven its entitlement to a refund or issuance of TCC in the amount of P134,298,376.32 representing its unutilized excess input VAT for the second quarter of CY 2014 which is attributable to its zero-rated sales/receipts for the same period,” it added.
Vestas initially claimed the refund of P185 million while its input VAT return for the second quarter in 2014 is at P200.8 million.
Out of the P200.8 million, the court disallowed the P44.16 million as it was not properly substantiated by VAT invoices or official receipts, leaving the valid input VAT to P156.7 million.
The amount was trimmed to P134.3 million as it is the amount attributable to its valid zero-rated sales/receipts of P1.8 billion.
The corporation first claimed that its zero-rated sales is at P2.1 billion but some of the amount was disallowed as it does not represent actual revenues, made outside the period of claim and were not reported in VAT return, the court said.
The decision was penned by Associate Justice Cielito N. Mindaro-Grulla and was concurred in by associate justices Juanito C. Castañeda, Jr. and Jean Marie A. Bacorro-Villena. — Vann Marlo Villegas
