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Philippines: Court clarifies VAT refund on renewable energy sales

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The Philippine Court of Tax Appeals has issued a decision clarifying the treatment of input VAT refunds on zero-rated sales of renewable energy.

In CTA Case No. 9446, decided on May 19, the dispute involved a renewable energy developer seeking a refund of unutilized input VAT related to the sale of wind-generated electricity. The Commissioner of Internal Revenue had denied the claim, and the Court of Tax Appeals’ Special Third Division initially ruled against the taxpayer.

However, the Court en banc subsequently overturned the previous decisions and remanded the case for further proceedings. Following this, the Special Third Division partially approved the taxpayer’s petition for review. The court found that:

  • Sales of wind-generated electricity by the taxpayer met the criteria for zero-rated sales under the National Internal Revenue Code as they originated from a renewable energy source.

  • Not all sales receipts provided sufficient documentation to justify application of the zero VAT rate.

The court’s latest ruling provides clarification on the evidentiary requirements for claiming VAT refunds related to zero-rated renewable energy transactions.

Source: gov.ph

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VAT/GST rates 2024 in Asia

Country Standard VAT/GST Rate Reduced Rates
Armenia The standard VAT rate is 20%.
Azerbaijan The standard VAT rate is 18%.
Bahrain From January 1, 2022, the standard VAT rate is 10%.
Bangladesh The standard VAT rate is 15%. 10%, 7.5%, 5%, 2,4%, 2%
Brunei There is no VAT in Brunei.
China The standard VAT rate is 13%, 9%, 6% Reduced rates of 5%, 2%, 3%, 1.5% and 0.5%.
UAE VAT is charged at 5% in the United Arab Emirates (UAE)
Georgia The standard VAT rate is 18%
Hong Kong There is no VAT or sales tax in Hong Kong.
India The primary rates of Indian GST are 0.25%, 1.5%, 3%, 5%, 12%, 18% and 28%
Indonesia The standard VAT rate is 11%
Iraq There is no VAT in Iraq. (The standard sales tax ranges from 10% to 300% on alcohol & tobacco)
Israel The standard VAT rate is 17%
Japan The standard (Consumption Tax) rate is 10% 8%
Kazakhstan The standard rate of VAT is 12%
South Korea The standard VAT rate is 10%
Kuwait There is no VAT in Kuwait
Laos The standard VAT rate is 10%
Lebanon The standard VAT rate is 11%
Malaysia On September 1, 2018, the Government of Malaysia replaced the Goods and Services Tax (GST) with a 10% Sales Tax (The standard rate of service tax is 8%) 5% (Sales Tax), 6%
Oman the standard VAT rate in Oman is 5%
Pakistan Pakistan does not have VAT. The standard sales tax rate is 18% Pakistan has a large number of reduced sales tax rates, including 1%, 2%, 5%, 10% and 12% (among others).
Philippines The standard VAT rate is 12%
Qatar There is no VAT in Qatar
Russia The standard VAT rate is 20% 10%
Saudi Arabia VAT is charged at 15%
Singapore The standard Goods and Services Tax (GST) rate is 9%
Sri Lanka The standard VAT rate is 18%
Taiwan The standard VAT rate is 5%
Tajikistan The standard VAT rate is 14% 10%, 7%, 5%
Thailand The standard VAT rate is 7% (Reduced from the standard 10% until 30 September 2024)
Turkey The standard VAT rate is 20% 10%, 1%
Uzbekistan The standard VAT rate is 12%
Vietnam The standard VAT rate is 8% Reduced VAT rate is 5%
*These rates are only indicative. Please use at your own discretion. Last update: 26/08/2024

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