While Coca-Cola Bottlers Philippines Inc says it's due 'a refund worth millions' in Vat
that it overpaid in 2008 due to inaccurate record-keeping, the claim was denied.
The Court of Tax Appeals said the amount in question 'essentially represents undeclared input taxes for the second quarter of 2008, and not the erroneously paid Vat
That's because businesses that purchase goods and services from Vat
-registered suppliers and providers are charged an input tax
, which is then offset or closed to an output tax
But in the Philippines, excess input taxes can only be claimed for refund when they're based on sales where Vat
is charged at the zero-rate or on cancellation of Vat registration
, when a company stops doing business.
That's why Coca-Cola's claim for a refund or tax
credit was denied in the Philippines, says BusinessInquirer
Without a valid tax invoice, you have no way to prove your input tax claim to SARS…
So you need a valid tax
invoice to prove your input tax
claim to SARS.
If you don't have the tax
invoice or if the invoice isn't valid, you can't claim the credit – if you do, SARS will disallow the claim and keep a close eye on any future claims you submit, says FSPBusiness
Don't forget to account for all your input tax claims properly on your Vat returns!
Then, remember that if you've claimed input tax
on a tax
invoice but you haven't paid your supplier within 12 months of the date of that invoice, you'll have to 'add back' the input tax
This means you'll have to include that specific Vat
amount as output tax
in block 12 of your Vat
return, says FSPBusiness
Following these two tips will prove to SARS that your input tax
claims are legitimate, meaning SARS will be more likely to refund you for them.