WESTERN MINDANAO POWER CORPORATION Versus COMMISSIONER OF INTERNAL REVENUE
G. R. No. 181136 June 13, 2012
Facts:
1. Petitioner WMPC is a domestic corporation engaged in the production and sale of electricity.
2. It is registered with the BIR as a VAT taxpayer.
3. Petitioner alleges that it sells electricity solely to the National Power Corporation (NPC), which is in turn exempt from the payment of all forms of taxes, duties, fees and imposts.
4. In view thereof and pursuant to Section 108(B) of the NIRC petitioner’s power generation services to NPC is zero-rated.
5. WMPC filed with the CIR applications for a tax credit certificate of its input VAT.
6. Noting that the CIR was not acting on its application, and fearing that its claim would soon be barred by prescription, WMPC filed with the CTA a Petition for Review.
7. The CIR filed its Comment on the CTA Petition, arguing that WMPC was not entitled to the latter’s claim for a tax refund in view of its failure to comply with the invoicing requirements – they failed to put the word zero rated imprinted on the invoice covering zero rated Sales.
8. WMPC countered that the invoicing and accounting requirements laid down in RR 795 were merely compliance requirements, which were not indispensable to establish the claim for refund of excess and unutilized input VAT.
Issue:
Whether the CTA seriously erred in dismissing the claim of petitioner for a refund or tax credit on input tax on the ground that the latter’s Official Receipts do not contain the phrase zero rated
You can support our page by clicking any of the following links:
|
Ruling:
Thus, a taxpayer engaged in zero-rated or effectively zero-rated sale may apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid, attributable to the sale.
In a claim for tax refund or tax credit, the applicant must prove not only entitlement to the grant of the claim under substantive law. It must also show satisfaction of all the documentary and evidentiary requirements for an administrative claim for a refund or tax credit. Hence, the mere fact that petitioner’s application for zero-rating has been approved by the CIR does not, by itself, justify the grant of a refund or tax credit. The taxpayer claiming the refund must further comply with the invoicing and accounting requirements mandated by the NIRC, as well as by revenue regulations implementing them.
Under the NIRC, a creditable input tax should be evidenced by a VAT invoice or official receipt, which may only be considered as such when it complies with the requirements of RR 795, particularly Section 4.1081. This section requires, among others, that if the sale is subject to zero percent (0%) value-added tax, the term zero-rated sale shall be written or printed prominently on the invoice or receipt.
You can support our page by clicking any of the following links:
|
0 comments:
Post a Comment