MANILA – The Court of Tax Appeals (CTA) has awarded a PHP9.6-million refund to a local mining firm, part of the original refund of PHP56.420 million sought for excess value-added taxes (VAT).

The CTA en banc granted the petition filed by Philex Mining Corp. as it “has sufficiently proven its entitlement to the refund or issuance of TCC (tax credit certificate) in the amount of PHP9,691,475,” the September 29 ruling said.

The court agreed with Philex that the statement of settlement of duties and taxes and single administrative documents it submitted are sufficient proof of payment of input VAT on its imports.

The first refund was granted in 2017.

The company’s claim for a tax refund for excess and unutilized VAT for 2017 was initially turned down for supposed failure to comply with documentary requirements.

Among other things, the tax court also said VAT invoicing requirements under the tax law does not apply to input VAT credits for transactions involving importation of goods considering that the vendors of imported goods are foreign entities not subject to Philippine laws and are not bound to comply with Philippine tax laws. (PNA)