ACCRALAW successfully obtained a tax refund for Vestas Services Philippines, Inc. (“VSPI”) in the amount of Php 134,298,376.32.
The award relates to VSPI’s zero-rated transactions in taxable year 2014, which included sales to a registered Renewable Energy (“RE”) developer.
One of the material issues that was resolved by the Supreme Court was whether VSPI should also be registered with the Department of Energy (“DOE”) to claim Value-Added Tax (“VAT”) zero-rating pursuant to Section 15(g) of the Renewable Energy Act of 2008. In a Resolution dated 11 January 2023, the Supreme Court affirmed VSPI’s position and clarified that the description “as duly certified by the DOE” in Section 15(g) only applies to RE developers and does not extend to their contractors and/or subcontractors. The Supreme Court further held that this interpretation is consistent with Section 108(B)(3) of the National Internal Revenue Code which provides that “services rendered to persons or entities whose exemption under special laws … subjects the supply of such services to zero percent (0%) rate.”
ACCRALAW Senior Partner Ruby Rose J. Yusi, Partner Atty. Jacqueline Ann A. Tan, and Senior Associate Fatima Faye Cordova-De Lima represented VSPI.
Ms. Yusi is a Senior Partner of ACCRALAW’s Tax Department and Corporate Special Projects Department. She is consistently recognized as one of the leading lawyers in the field of Taxation by the Asia Legal 500, Chambers Global, and the Global Tax Directory.
Ms. Tan is a Partner and the Monitor of ACCRALAW’s Tax Department. Ms. Tan was cited as a recommended lawyer by the Legal 500 Asia Pacific Rankings for the practice area of Tax in 2022 and in 2023.
Ms. Cordova-De Lima is a Senior Associate of ACCRALAW’s Tax Department and a licensed Certified Public Accountant.