Philip Morris Philippines Granted Partial Tax Refund on VAT

Regulations by
Philip Morris Philippines Granted Partial Tax Refund on VAT
PMI Philippines gets partial approval from CTA for tax refund application worth PHP 32.04 million for unused VAT.

According to a report by the Philippine media outlet "Business World Online," Philip Morris International (PMI) Philippines has been granted approval for a partial tax refund application by the Philippine Court of Tax Appeals (CTA). The approved refund amounts to PHP 320.4 million (approximately $560,000 USD) and corresponds to the unused input value-added tax on zero-rated sales for the year 2015.


The court ruling stated that PMI was able to prove its entitlement to the funds, as evidenced by its sales invoices indicating the actual goods were exported from the Philippines to foreign countries for sale.


Zero-rated sales refer to transactions carried out by value-added tax (VAT) registered taxpayers that do not generate any output tax. Taxpayers must present official receipts for a specific financial period and indicate the phrase "zero-rated" on the receipt in order to qualify for tax exemption.


Previously, PMI requested a refund of 90 million Philippine pesos (approximately 1.58 million US dollars) for excess input value-added tax for the year 2015. This request was partially approved by the CTA's third division at the time. As per the directive, the domestic tax commissioner (CIR) was supposed to refund 31.18 million Philippine pesos to PMI.


In relation to this case, the Philippine Tax Court (CTA) and the Commissioner of Internal Revenue (CIR) hold opposing views. The CIR believes that the CTA should dismiss PMI's appeal and argues that PMI's export sales fail to prove that the company's goods were paid for in officially designated foreign currency. On the other hand, the CTA contends that the CIR's arguments are insufficient to support the dismissal of the case.


This article is translated from an original Chinese article available on by AI, and has been reviewed and edited by 2FIRSTS's English editorial team. The Chinese original text is the only authoritative source of information. The exclusive copyright and license rights to this article are held by 2FIRSTS Technology Co., Ltd. Any reproduction, reprinting, or redistribution of this article, either in part or in full, requires express written permission from 2FIRSTS and must include clear attribution along with a link to this content. Non-compliance may result in legal action. 2FIRSTS Technology Co., Ltd. reserves the right to pursue legal actions in case of unauthorized use or distribution.