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Toshiba Information Equipment (Phils.) Inc. v. CIR, G.R. No. 157594, 09 March 2010

Toshiba, a corporation registered with PEZA as an ECOZONE export enterprise, filed applications for tax credit/refund of unutilized input VAT payments. The CIR denied the applications. The CTA ruled in favor of Toshiba, but the Court of Appeals reversed, stating Toshiba was tax exempt. The Supreme Court held that Toshiba was entitled to VAT refund because the export sales took place before 1999 when PEZA enterprises could be subject to VAT as purchasers and sellers.

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Gela Bea Barrios
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220 views1 page

Toshiba Information Equipment (Phils.) Inc. v. CIR, G.R. No. 157594, 09 March 2010

Toshiba, a corporation registered with PEZA as an ECOZONE export enterprise, filed applications for tax credit/refund of unutilized input VAT payments. The CIR denied the applications. The CTA ruled in favor of Toshiba, but the Court of Appeals reversed, stating Toshiba was tax exempt. The Supreme Court held that Toshiba was entitled to VAT refund because the export sales took place before 1999 when PEZA enterprises could be subject to VAT as purchasers and sellers.

Uploaded by

Gela Bea Barrios
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Toshiba Information Equipment (Phils.) Inc. v. CIR, G.R. No.

157594, 09 March 2010

FACTS
Toshiba is a domestic corporation registered with the Philippine
Economic Zone Authority (PEZA) as an Economic Zone
(ECOZONE) export enterprise.It filed two separate applications for
tax credit/refund of its unutilized input VAT payments. The CIR
denied the application. On appeal, the CTA ruled that Toshiba is
entitled to the credit/refund of the input VAT paid on its purchases
of goods and services relative to such zero-rated export sales. The
Court of Appeals reversed the decision of the CTA in the petition
for review stating that Toshiba is a tax exempt entity under R.A.
No. 7916 thus not entitled to refund the VAT payments made in the
domestic purchase of goods and services.

ISSUE
Is Toshiba entitled to VAT refund?

HELD
YES. Such export sales took place before October 15, 1999, when
the old rule on the VAT treatment of PEZA-registered enterprises
still applied. Under this old rule, it was not only possible, but even
acceptable, for Toshiba, availing itself of the income tax holiday
option under Section 23 of Republic Act No. 7916, in relation to
Section 39 of the Omnibus Investments Code of 1987, to be subject
to VAT, both indirectly (as purchaser to whom the seller shifts the
VAT burden) and directly (as seller whose sales were subject to
VAT, either at ten percent [10%] or zero percent [0%])

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