The Court of Tax Appeals CTA) has turned down the more than P28 million value-added tax refund claim of an American techno firm for the goods it bought from another company also located inside the Special Economic Zone.
![Court of Tax Appeals (MANILA BULLETIN)](https://mb.com.ph/wp-content/uploads/2019/10/cta.jpg)
(MANILA BULLETIN)
Instead, the court asked Wells Fargo Enterprises Global Services to get back the VAT payment s from its supplier, Well Fargo Philippine Solution.
The court stated that sale transactions between two Ecozone entities are VAT exempt pursuant to the Rules and regulations of the Philippine Export Zone Authority implementing Section 109 of the Tax Code.
It said the best "recourse for the petitioner is to claim the refund from its supplier."
The petitioner anchored its petition on various rulings issued by the BIR on similar issue.
The court, however, explained that a ruling can't be used as precedent by other taxpayers "but it can provide useful information on how the BIR may treat similar transactions."
Rulings are official position of the BIR on inquiries of taxpayers who request clarification on the provision of tax laws and implementing regulations based on a particular fact at specific point of time," said Associate Justice Erlinda Uy who wrote the decision.