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CIR
2.
Facts:
3.
4.
Then, on May, 1999, Silicon filed with the CIR an application for
credit/refund of unutilized input VAT for the period of Oct. 1,
1998 to Dec. 31, 1998.
Due to the inaction of the CIR, Silicon, on Dec. 27, 2000, filed a
Petition for Review with the CTA Division. Silicon alleged that
the 4th quarter of 1998, it generated and recorded zero-rated
export sales paid to Silicon in acceptable foreign currency and
that for the said period, Silicon paid input VAT in the total amount
which have not been applied to any output VAT.
The CIR, on the other hand, raised the defenses that: 1. Silicon
did not show that it complied with the provisions of Sec. 229 of
the Tax Code; 2. That claims for refund are construed strictly
against the claimant similar to the nature of exemption from
taxes; and that Silicon failed to prove that is entitled for refund.
The CTA Division granted Silicons claim for refund of unutilized
input VAT on capital goods. However, it denied Silicons claim
for credit/refund of input VAT attributable to its zero-rated export
sales. It is because Silicon failed to present an Authority to Print
(ATP) from the BIR neither did it print on its export sales invoices
the ATP and the word zero-rated.
Silicon moved for reconsideration claiming that it is not required
to secure an ATP since it has a Permit to Adopt Computerized
Accounting Documents such as Sales Invoice and Official
Receipts from the BIR. And that the printing of the word zerorated on its export sales invoices is not necessary because all its
finished products are exported to its mother company, Intel Corp.,
a non-resident corporation and a non-VAT registered entity.
ISSUE: W/N Silicon entitled to claim from refund of Input VAT
attributable to its zero-rated sales.
Ruling: no.
There are two types of input VAT credits:
1.
2.
The taxpayer must be engaged in sales which are zerorated or effectively zero-rated;
The claim must be filed within 2 years after the close of
the taxable quarter when such sales were made; and
The creditable input tax due or paid must be attributable
to such sales, except the transitional input tax, to the
extent that such input tax has not been applied against
the output tax.