Tuesday, January 14, 2014

Rules for claim for refund or tax credit of unutilized input credit VAT (From Commissioner vs. Visayas Geothermal Power Company, G.R. No. 181276)

The rules for the filing of a claim for refund or tax credit of unutilized input credit VAT are as follows:

1. The taxpayer has two (2) years after the close of the taxable quarter when the relevant sales were made within which to file an administrative claim before the CIR for a refund of the creditable input tax or the issuance of a tax credit certificate, regardless of when the input VAT was paid, according to Section 112(A) of the NIRC and Mirant(G.R. 172129).

Commissioner of Internal Revenue vs. Visayas Geothermal Power Company, Inc. – G.R. No. 181276, November 11, 2013

Commissioner of Internal Revenue vs. Visayas Geothermal Power Company, Inc. – G.R. No. 181276, November 11, 2013

Facts:

Respondent Visayas Geothermal Power Company, Inc. (VGPCI) is engaged in the business of generation and sale of electricity. Due to Republic Act No. 9136, effective June 26, 2001, VGPCI’s sales of generated power becamse zero-rated and were no longer subject to VAT at 10%.

Monday, January 13, 2014

Commissioner of Internal Revenue vs. Dash Engineering Philippines, Inc., G.R. NO. 184145, Dec. 11, 2013

Preview of RELEVANT LAWS - this won't be reproduced below - Actual case digest is further down.

SEC. 112 . Refunds or Tax Credits of Input Tax. –
       (A) Zero-rated or Effectively Zero-rated Sales. – Any VAT-registered person whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax.. x x x
         x x x
       (C) Period within which Refund or Tax Credit of Input Taxes Shall be Made. – In proper cases, the Commissioner shall grant a refund or issue the tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with subsection A hereof. (As amended by R.A. No. 9337)
       In case of  full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals. (Emphasis supplied)