G.R. No. 171307, August 28, 2013
J.R.A. PHILIPPINES, INC., Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent.
R E S O L U T I O N
The invoicing requirements for a VAT-registered taxpayer as provided in the NIRC and revenue regulations are clear. A VAT-registered taxpayer is required to comply with all the VAT invoicing requirements to be able to file for a claim for input taxes on domestic purchases for goods or services attributable to zero-rated sales. A “VAT invoice” is an invoice that meets the requirements of Section 4.108-1 of RR 7-95. Contrary to Microsoft’s claim, RR-7-95 expressly states that “[A]ll purchases covered by invoice other than a VAT invoice shall not give rise to any input tax. Microsoft’s invoice, lacking the word “zero-rated,” is not a “VAT invoice,” and thus cannot give rise to any input tax.37 (Emphasis supplied)All told, the CTA committed no reversible error in denying petitioner’s refund claim.
* Designated Acting Member per Special Order No. 1525 dated August 22, 2013.cralawnad
1Rollo, pp. 11-51.cralawnad
2 Id. at 54-65. Penned by Associate Justice Caesar A. Casanova, with Associate Justices Lovell R. Bautista, Olga Palanca-Enriquez, concurring; Associate Justice Juanito C. Castañeda, Jr., separate concurring; and Presiding Justice Ernesto D. Acosta, concurring and dissenting.cralawnad
3 Id. at 88-93. Issued by Associate Justices Juanito C. Castañeda, Jr., Lovell R. Bautista, Erlinda P. Uy, Caesar A. Casanova, and Olga Palanca-Enriquez, with Presiding Justice Ernesto D. Acosta, dissenting.cralawnad
4 Id. at 55.cralawnad
5 Id. at 56.cralawnad
7 SEC. 229. Recovery of Tax Erroneously or Illegally Collected. -x x x x
In any case, no such suit or proceeding shall be filed after the expiration of two (2) years from the date of payment of the tax or penalty regardless of any supervening cause that may arise after payment: Provided, however, That the Commissioner may, even without a written claim therefor, refund or credit any tax, where on the face of the return upon which payment was made, such payment appears clearly to have been erroneously paid.cralawnad
8 “AN ACT AMENDING THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES,” otherwise known as “Tax Reform Act of 1997.”
9Rollo, pp. 101-105.cralawnad
10 Id. at 122-124.cralawnad
11 SEC. 24. Exemption from Taxes under the National Internal Revenue Code. - Any provision of existing laws, rules and regulations to the contrary notwithstanding, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. In lieu of paying taxes, five percent (5%) of the gross income earned by all businesses and enterprises within the ECOZONE shall be remitted to the national government. x x x. (See also id. at 166.)
12 “AN ACT PROVIDING FOR THE LEGAL FRAMEWORK AND MECHANISMS FOR THE CREATION, OPERATION, ADMINISTRATION, AND COORDINATION OF SPECIAL ECONOMIC ZONES IN THE PHILIPPINES, CREATING FOR THIS PURPOSE, THE PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA), AND FOR OTHER PURPOSES.”
13 SEC. 109. Exempt Transactions. - The following shall be exempt from the value-added tax:
x x x x
(q) Transactions which are exempt under international agreements to which the Philippines is a signatory or under special laws, except those under Presidential Decree Nos. 66, 529 and 1590;
x x x x
14Rollo, p. 123.cralawnad
16 The specific division is not indicated in the records.cralawnad
17Rollo, pp. 163-175. Penned by Associate Judge Juanito C. Castañeda, Jr., with Associate Judge Lovell R. Bautista, concurring.cralawnad
18 SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. -
(A) Invoicing Requirements. - A VAT-registered person shall, for every sale, issue an invoice or receipt. In addition to the information required under Section 237, the following information shall be indicated in the invoice or receipt:(1) A statement that the seller is a VAT-registered person, followed by his taxpayer's identification number (TIN); and
(2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax.x x x x
19Rollo, p. 172.cralawnad
20 Id. at 173-174.cralawnad
21 Id. at 176-181. Dated April 5, 2004.cralawnad
22 Id. at 187-190.cralawnad
23 Id. at 205.cralawnad
24 Id. at 204.cralawnad
25 Id. at 206.cralawnad
26 Id. at 54-65.cralawnad
27 Id. at 59-60.cralawnad
28 Id. at 61-62.cralawnad
29 Id. at 88-93.cralawnad
30Western Mindanao Power Corporation v. CIR, G.R. No. 181136, June 13, 2012, 672 SCRA 350, 362.cralawnad
31 SEC. 110. Tax Credits. –
(A) Creditable Input Tax. –32 SEC. 237. Issuance of Receipts or Sales or Commercial Invoices. - All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for services rendered valued at Twenty-five pesos (P25.00) or more, issue duly registered receipts or sales or commercial invoices, prepared at least in duplicate, showing the date of transaction, quantity, unit cost and description of merchandise or nature of service: Provided, however, That in the case of sales, receipts or transfers in the amount of One hundred pesos (P100.00) or more, or regardless of the amount, where the sale or transfer is made by a person liable to value-added tax to another person also liable to value-added tax; or where the receipt is issued to cover payment made as rentals, commissions, compensations or fees, receipts or invoices shall be issued which shall show the name, business style, if any, and address of the purchaser, customer or client: Provided, further, That where the purchaser is a VAT-registered person, in addition to the information herein required, the invoice or receipt shall further show the Taxpayer Identification Number (TIN) of the purchaser.
(1) Any input tax evidenced by a VAT invoice or official receipt issued in accordance with Section 113 hereof x x x: x x x x
x x x x
33 SEC. 238. Printing of Receipts or Sales or Commercial Invoices. - All persons who are engaged in business shall secure from the Bureau of Internal Revenue an authority to print receipts or sales or commercial invoices before a printer can print the same.
No authority to print receipts or sales or commercial invoices shall be granted unless the receipts or invoices to be printed are serially numbered and shall show, among other things, the name, business style, Taxpayer Identification Number (TIN) and business address of the person or entity to use the same, and such other information that may be required by rules and regulations to be promulgated by the Secretary of Finance, upon recommendation of the Commissioner.
x x x x
34 Section 4.108-1 of RR 7-95 provides:chanrobles virtua1aw 1ibrarySEC. 4.108-1. Invoicing Requirements. – All VAT-registered persons shall, for every sale or lease of goods or properties or services, issue duly registered receipts or sales or commercial invoices which must show:35Eastern Telecommunications Philippines, Inc. v. CIR, G.R. No. 168856, August 29, 2012, 679 SCRA 305, 313.cralawnad
Only VAT-registered persons are required to print their TIN followed by the word “VAT” in their invoices or receipts and this shall be considered as a “VAT-invoice.” All purchases covered by invoices other than “VAT Invoice” shall not give rise to any input tax.
- the name, TIN and address of seller;
- date of transaction;
- quantity, unit cost and description of merchandise or nature of service;
- the name, TIN, business style, if any, and address of the VAT- registered purchaser, customer or client;
- the word “zero-rated” imprinted on the invoice covering zero-rated sales; and
- the invoice value or consideration.
x x x x
36 G.R. No. 180173, April 6, 2011, 647 SCRA 398. See also J.R.A. Philippines, Inc. v. CIR, October 11, 2010, 632 SCRA 517, 525-527.cralawnad
37 Id. at 405.