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    Western Mindanao Corp Vs CIR Digest

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    minri721
    WMPC, a company that generates and sells electricity, filed an application for tax credits on input VAT paid for its zero-rated sales to NPC, an exempt government corporation. However, its application was denied because its official receipts did not indicate the phrase "zero-rated" as required by regulations. The Supreme Court ruled that the denial was proper as failure to indicate a sale as zero-rated on the invoice or receipt is fatal to a claim for tax refund or credit. For an administrative claim, the taxpayer must not only be entitled to the refund or credit under substantive law but must also satisfy all documentary requirements, including invoicing regulations.

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    Western Mindanao Corp Vs CIR Digest

    Uploaded by

    minri721
    405 views1 page
    WMPC, a company that generates and sells electricity, filed an application for tax credits on input VAT paid for its zero-rated sales to NPC, an exempt government corporation. However, its application was denied because its official receipts did not indicate the phrase "zero-rated" as required by regulations. The Supreme Court ruled that the denial was proper as failure to indicate a sale as zero-rated on the invoice or receipt is fatal to a claim for tax refund or credit. For an administrative claim, the taxpayer must not only be entitled to the refund or credit under substantive law but must also satisfy all documentary requirements, including invoicing regulations.

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    Western Mindanao Corp vs CIR digest

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    WMPC, a company that generates and sells electricity, filed an application for tax credits on input VAT paid for its zero-rated sales to NPC, an exempt government corporation. However, its application was denied because its official receipts did not indicate the phrase "zero-rated" as required by regulations. The Supreme Court ruled that the denial was proper as failure to indicate a sale as zero-rated on the invoice or receipt is fatal to a claim for tax refund or credit. For an administrative claim, the taxpayer must not only be entitled to the refund or credit under substantive law but must also satisfy all documentary requirements, including invoicing regulations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    405 views1 page

    Western Mindanao Corp Vs CIR Digest

    Uploaded by

    minri721
    WMPC, a company that generates and sells electricity, filed an application for tax credits on input VAT paid for its zero-rated sales to NPC, an exempt government corporation. However, its application was denied because its official receipts did not indicate the phrase "zero-rated" as required by regulations. The Supreme Court ruled that the denial was proper as failure to indicate a sale as zero-rated on the invoice or receipt is fatal to a claim for tax refund or credit. For an administrative claim, the taxpayer must not only be entitled to the refund or credit under substantive law but must also satisfy all documentary requirements, including invoicing regulations.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Western Mindanao Power Corp vs CIR

    Case Digest GR 181136 June 13 2012

    Facts:

    WMPC, engaged in the production and sale of electricity, is registered as a VAT taxpayer. It sells electricity
    solely to the National Power Corporation (NPC), which is in turn exempt from the payment of all forms of
    taxes, duties, fees and imposts, pursuant to its charter. Also, pursuant to Section 108(B) (3) of the NIRC,
    WMPCs power generation services to NPC is zero-rated. Thus, WMPC tried to file an application for tax
    credit certificates on input VAT paid to its zero-rated sales. However, its application was denied because
    of WMPCs failure to comply with the invoicing requirements under Section 113 of the NIRC in relation to
    Sec 4.108-1 of RR 7-95.

    Issue: W/N denial of application for tax refund or tax credit on the ground that the taxpayers Official
    Receipts do not contain the phrase zero-rated is proper

    Yes. Failure to indicate the term zero-rated in the invoice or receipt for zero-rated transactions is fatal.

    In a claim for tax refund or tax credit, the taxpayer must prove not only entitled to the grant of claim under
    substantive law, but must also show satisfaction of all the documentary and evidentiary requirements for
    an administrative claim of a refund or tax credit. Hence, the mere fact that the applicants zero-rating has
    been approved by the CIR does not, by itself, justify the grant of a refund or tax credit. The taxpayer must
    further comply with the invoicing and accounting requirements mandated by the NIRC, as well as the
    revenue regulations implementing them.

    Under the NIRC, a creditable input tax should be evidenced by a VAT receipt or Official Receipt, which may
    only be considered as such when it complies with the requirements of RR 7-95 particulary Section 4.108-
    1 thereof. This section requires, among others, that if the sale is subject to zero-percent VAT, the term
    zero-rated sale shall be written or printed prominently on the invoice or receipt

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