Air Liquide Philippines, Inc. v. Commissioner of Internal Revenue

FIRST DIVISION [C.T.A. CASE NO. 8052. October 25, 2021.] AIR LIQUIDE PHILIPPINES, INC. , petitioner , vs. COMMISSIONER OF INTERNAL REVENUE , respondent. DECISION DEL ROSARIO , P.J p : This case involves a Petition for Review filed by petitioner Air Liquide Philippines, Inc. on March 30, 2010, praying for the refund or issuance of a tax credit certificate in the total amount of Twenty-One Million Four Hundred Sixty Thousand Four Hundred Thirty-One Pesos and Forty-Eight Centavos (P21,460,431.48) representing its alleged unutilized input Value-Added Tax (VAT) for the 1st quarter of 2008. THE PARTIES Petitioner Air Liquide Philippines, Inc. is registered with the Bureau of Internal Revenue (BIR) as a value-added tax (VAT) entity under Certificate of Registration Number OCN 9RC000057089, effective March 9, 2006. 1 Respondent is the Commissioner of the BIR, with principal office at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City. 2 He is vested with the power to decide tax cases, including claims for refunds and/or tax credits pursuant to Section 4 of 1997 National Internal Revenue Code (NIRC), as amended. 3 ANTECEDENTS On December 23, 2009, petitioner filed with the BIR-Revenue District Office No. 121, an application for tax credit/refunds of its unutilized input VAT for the 1st Quarter of 2008. 4 Alleging inaction on the part of respondent, petitioner filed a Petition for Review before the Court in Division on March 30, 2010, 5 praying that the latter: (1) declare petitioner entitled to the issuance of a tax credit certificate in the total amount of P21,460,431.48, representing unutilized input VAT paid for the 1st quarter of 2008; and (2) order respondent to issue the tax credit certificate in favor of petitioner in the same amount. On May 20, 2010, respondent filed his Motion to Dismiss . 6 Petitioner then posted its Comment/Opposition (To Motion to Dismiss dated 13 May 2010 ) on June 9, 2010. 7 In the Resolution dated September 1, 2010, 8 this Court granted respondent's Motion to Dismiss . On September 20, 2010, petitioner filed its Motion for Reconsideration (Re: Resolution dated 1 September 2010) . 9 Respondent then posted his Comment/Opposition to Petitioner's Motion for Reconsideration on October 14, 2010. 10 Thereafter, petitioner filed its Reply (Re: Respondent's Comment/Opposition to Petitioner's Motion for Reconsideration dated 13 October 2010) on October 29, 2010. 11 In the Resolution dated November 12, 2010, 12 this Court denied petitioner's Motion for Reconsideration . Petitioner then filed a Petition for Review on December 6, 2010 before this Court En Banc . 13 The case was docketed as CTA EB No. 704. On February 27, 2012, this Court En Banc rendered a Decision, 14 the dispositive portion of which reads: " WHEREFORE , on the basis of the foregoing considerations, the Petition for Review is DISIMISSED . Accordingly, the Resolutions dated 1 September 2010 and 12 November 2010 of the Court in Division are hereby AFFIRMED . Petitioner's claim for refund in the amount of P21,460,431.48 is DENIED on the ground that the judicial claim for the first quarter of 2008 was prematurely filed. SO ORDERED ." Dissatisfied, petitioner filed its Motion for Reconsideration (Decision of 27 February) on March 23, 2012. 15 In the Resolution dated June 28, 2012, 16 this Court En Banc denied petitioner's Motion for Reconsideration as follows: " WHEREFORE , finding no reversible error committed by this Court in the assailed Decision promulgated on February 27, 2012, petitioner's 'Motion for Reconsideration (Decision of 27 February)' is hereby DENIED for utter lack of merit. SO ORDERED ." Petitioner then filed a Petition for Review on Certiorari before the Supreme Court on July 23, 2012. 17 The case was docketed as G.R. No. 202507. Subsequently, the Supreme Court issued a Resolution dated October 11, 2017 18 in G.R. No. 202507, 19 entitled "Air Liquide Philippines, Inc. vs. Commissioner of Internal Revenue," remanding the case to this Court, and directing the latter to give course to petitioner's Petition for Review , and to conduct further proceedings. The dispositive portion of said Resolution reads: " WHEREFORE , the petition is GRANTED . The Decision dated February 27, 2012 and Resolution dated June 28, 2012 of the Court of Tax Appeals en banc in CTA EB Case No. 704 are REVERSED and SET ASIDE . The case is REMANDED to the Court of Tax Appeals, which is DIRECTED to give due course to petitioner Air Liquide Philippines, Inc.'s petition for review and conduct further proceedings. SO ORDERED ." The aforesaid Resolution became final and executory on December 22, 2017 and was entered in the High Court's Book of Entries of Judgment. 20 Correspondingly, this Court En Banc , in CTA EB No. 704, issued the Resolution dated June 21, 2018, 21 the dispositive portion of which reads: " WHEREFORE , premises considered, the case 'Air Liquide Philippines, Inc. vs. Commissioner of Internal Revenue,' docketed as CTA Case No. 8052 is REMANDED to the CTA Special First Division for further proceedings. SO ORDERED ." Thus, this Court in Division issued the Resolution dated December 4, 2018, 22 granting respondent a period of fifteen (15) days from notice, within which to file his Answer to the present Petition for Review , pursuant to the Summons dated April 12, 2010. Respondent filed his Motion to Admit Answer (with Profuse Apology) on January 9, 2019, 23 attaching therewith his Answer . 24 Petitioner then filed a Comment (Re: BIR's Motion to Admit dated 08 January 2019) on February 8, 2019. 25 In the Resolution dated March 11, 2019, 26 the Court granted respondent's Motion to Admit Answer (with Profuse Apology) , and admitted respondent's Answer to form part of the record of the case. The Pre-Trial Conference was set and held on May 9, 2019. 27 Prior thereto, petitioner filed its Pre-Trial Brief posted on May 6, 2019, 28 while Respondent's Pre-Trial Brief was filed on May 8, 2019. 29 On May 17, 2019, the parties submitted their Joint Stipulation of Facts and Issues . 30 Subsequently, the Pre-Trial Order dated August 30, 2019 was issued, 31 wherein this Court, inter alia , deemed the termination of the Pre-Trial. During trial, petitioner presented its testimonial and documentary evidence. It offered the testimonies of the following individuals, namely: (1) Mr. Frederic Andre Girault, 32 petitioner's Chief Financial Officer; and (2) Ms. Cindy C. Torralba, 33 petitioner's Manager for Finance; and (3) Mr. Edward D. Roguel, 34 Court-commissioned Independent Certified Public Accountant (ICPA). 35 The ICPA Report was submitted, through registered mail, on October 31, 2019. 36 During the hearing held on February 13, 2020, respondent's counsel manifested that she would no longer present any evidence. 37 Petitioner filed its Formal Offer of Evidence on February 18, 2020. 38 Respondent then filed his Comment/Opposition (To Petitioner's Formal Offer of Evidence dated February 17, 2020) on March 9, 2020. 39 In the Resolution dated July 30, 2020, 40 the Court admitted petitioner's exhibits, except for the following: 1. Exhibits "P-1", "P-6", "P-11", "P-11-a", "P-13", "P-13-a", "P-29", "P-30", "P-31", "P-32", "P-33", "P-34", "P-35", "P-36", "P-37", "P-38", "P-39", "P-41", "P-42", "P-43", "P-45", "P-46", "P-47", "P-49", "P-51", "P-53", "P-54", "P-59", "P-60", "P-61", "P-62", "P-63", "P-65", "P-66", "P-67", "P-68", "P-69", "P-70", "P-71", "P-72", "P-73", and "P-75", for failure to submit the duly-marked exhibits; 2. Exhibits "P-2", "P-3", "P-5", "P-12", "P-14", "P-15", "P-16", "P-17", "P-18", "P-19", "P-20", "P-21", "P-22", "P-28", "P-40", "P-44", "P-48", "P-50", "P-52", "P-55", "P-56", "P-57", "P-58", "P-64", "P-74", "P-76" and submarkings, "P-26-24", "P-26-87", "P-82" and submarkings, "P-86", "P-87", and "P-88", for failure to present the originals for comparison; 3. Exhibit "P-4", for not being found in the records of the case and for not being identified; and 4. Exhibits "P-26-5", "P-26-6", "P-26-9", "P-26-11", "P-26-20", "P-26-138", "P-26-240", "P-26-247", "P-26-315", "P-26-322", "P-26-393", "P-26-394", "P-26-408", "P-26-409", "P-26-410", "P-26-411", "P-26-412", "P-26-413", "P-26-414", "P-26-415", "P-26-416", "P-26-417", "P-26-418", "P-26-419", "P-26-420", "P-26-421", "P-26-422", "P-26-423", "P-26-424", "P-26-425", "P-26-426", "P-26-427", "P-26-428", "P-26-429", "P-26-430", "P-26-431", "P-26-432", "P-26-433", "P-26-434", "P-26-435", "P-26-436", "P-26-437", "P-26-438", "P-26-439", "P-26-440", "P-26-441", "P-26-442", "P-26-443", "P-26-444", "P-26-445", "P-26-446", "P-26-447", "P-26-451", "P-26-453", "P-26-454", "P-26-455", "P-26-490", "P-26-502", "P-26-507", "P-26-512", "P-26-522", "P-26-528", "P-26-530", "P-26-546", "P-26-556", "P-26-564", "P-26-575", "P-26-576", "P-26-579", "P-26-580", "P-26-581", "P-26-582", "P-26-631", "P-26-632", "P-26-633", "P-26-634", "P-26-635", "P-26-636", "P-26-637", "P-26-638", "P-26-643", "P-26-646", "P-26-649", "P-26-653", "P-26-655", "P-26-656", "P-26-685", "P-26-701", "P-26-761", "P-26-762", and "P-83" and submarkings, for not being found in the records of the case. Thus, on September 10, 2020, petitioner filed its Motion for Reconsideration (Re: Resolution dated 30 July 2020) on the denied exhibits. 41 Respondent failed to file his comment thereon. 42 In the Resolution dated February 23, 2021, 43 the Court partially granted the said Motion for Reconsideration (Re: Resolution dated 30 July 2020) of petitioner, and admitted Exhibits "P-1", "P-2", "P-3", "P-5", "P-6", "P-11", "P-11-a", "P-13", "P-13-a", "P-26-5", "P-26-6", "P-26-9", "P-26-11", "P-26-20", "P-26-240", "P-26-247", "P-26-315", "P-26-322", "P-26-502", "P-26-507", "P-26-556", "P-26-579", "P-26-631", "P-26-632", "P-26-633", "P-26-634", "P-26-635", "P-26-636", "P-26-637", "P-26-638", "P-26-643", "P-26-646", "P-26-649", "P-26-653", "P-26-761", "P-26-762", "P-29", "P-30", "P-31", "P-32", "P-33", "P-34", "P-35", "P-36", "P-37", "P-38", "P-39", "P-41", "P-42", "P-43", "P-45", "P-46", "P-47", "P-49", "P-51", "P-53", "P-54", "P-59", "P-60", "P-61", "P-62", "P-63", "P-65", "P-66", "P-67", "P-68", "P-69", "P-70", "P-71", "P-72", "P-73", "P-75", and "P-83" and submarkings; but the following exhibits were still denied, for not being found in the records to wit: Exhibits "P-26-138", "P-26-393", "P-26-394", "P-26-408", "P-26-409", "P-26-410", "P-26-411", "P-26-412", "P-26-413", "P-26-414", "P-26-415", "P-26-416", "P-26-417", "P-26-418", "P-26-419", "P-26-420", "P-26-421", "P-26-422", "P-26-423", "P-26-424", "P-26-425", "P-26-426", "P-26-427", "P-26-428", "P-26-429", "P-26-430", "P-26-431", "P-26-432", "P-26-433", "P-26-434", "P-26-435", "P-26-436", "P-26-437", "P-26-438", "P-26-439", "P-26-440", "P-26-441", "P-26-442", "P-26-443", "P-26-444", "P-26-445", "P-26-446", "P-26-447", "P-26-451", "P-26-453", "P-26-454", "P-26-455", "P-26-490", "P-26-512", "P-26-522", "P-26-528", "P-26-530", "P-26-546", "P-26-564", "P-26-575", "P-26-576", "P-26-580", "P-26-581", "P-26-582", "P-26-655", "P-26-656", "P-26-685", and "P-26-701". On May 21, 2021, petitioner filed its Memorandum , 44 while the Memorandum of respondent was posted on May 15, 2021. 45 The case was considered submitted for decision on June 17, 2021. 46 THE ISSUE As stipulated, the sole issue for the Court's determination is as follows: ". . . Whether or not Petitioner is entitled to a refund/tax credit of excess or unutilized input VAT payments for the first quarter of calendar year 2008 in the amount of Twenty-One Million Four Hundred Sixty Thousand Four Hundred Thirty-One Pesos and Forty-Eight Centavos (P21,460,431.46)." 47 Petitioner's arguments: Petitioner argues that the administrative and judicial claims were seasonably filed; that it is a VAT-registered entity, and is engaged in VAT zero-rated sales; that it incurred and paid input VAT during the 1st quarter of 2008 from its domestic purchases of goods and services; that its input VAT for the 1st quarter of 2008 has not been applied against output taxes; and that its input VAT is directly attributable to its effectively zero-rated sales for the 1st quarter of 2008. Respondent's counter-arguments: Respondent counters that petitioner failed to prove that their sales of goods and services to Philippine Economic Zone Authority (PEZA)-registered enterprises qualified as effectively zero-rated sales; that the burden of proving entitlement to a refund lies with the claimant; and that the exhibits of petitioner should not be given any probative value for being hearsay evidence. THE COURT'S RULING The present Petition for Review is denied. Requisites for the grant of the refund or issuance of a tax credit certificate under the NIRC Section 112 (A) and (C) of the NIRC of 1997, as amended by Republic Act No. 9337, 48 provides as follows: "SEC. 112. Refunds or Tax Credits of Input Tax . (A) Zero-Rated or Effectively Zero-Rated Sales. Any VAT-registered person, whose sales are zero-rated or effectively zero-rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106 (A) (2) (a) (1), (2) and (b) and Section 108 (B) (1) and (2), the acceptable foreign currency exchange proceeds thereof had been duly accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP): Provided, further , That where the taxpayer is engaged in zero-rated or effectively zero-rated sale and also in taxable or exempt sale of goods of properties or services, and the amount of creditable input tax due or paid cannot be directly and entirely attributed to any one of the transactions, it shall be allocated proportionately on the basis of the volume of sales: x x x. xxx xxx xxx (C) Period within which Refund or Tax Credit of Input Taxes shall be Made. In proper cases, the Commissioner shall grant a refund or issue a tax credit certificate for creditable input taxes within one hundred twenty (120) days from the date of submission of complete documents in support of the application filed in accordance with Subsection (A) hereof. In case of full or partial denial of the claim for tax refund or tax credit, or the failure on the part of the Commissioner to act on the application within the period prescribed above, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim or after the expiration of the one hundred twenty day-period, appeal the decision or the unacted claim with the Court of Tax Appeals." Based on the foregoing provisions, jurisprudence has laid down nine (9) requisites which must be complied with by the taxpayer-claimant to successfully obtain a credit/refund of input VAT. Said requisites may be classified into certain categories, to wit: Timeliness of the filing of the administrative and judicial claims : 1. the claim is filed with the BIR within two years after the close of the taxable quarter when the sales were made; 49 2. that in case of full or partial denial of the refund claim, or the failure on the part of the Commissioner to act on the said claim within a period of 120 days, the judicial claim is filed with this Court, within 30 days from receipt of the decision or after the expiration of the said 120-day period; 50 With reference to the taxpayer's registration with the BIR : 3. the taxpayer is a VAT-registered person; 51 In relation to the taxpayer's output VAT : 4. the taxpayer is engaged in zero-rated or effectively zero-rated sales; 52 5. for zero-rated sales under Sections 106 (A) (2) (a) (1) and (2); 106 (B); and 108 (B) (1) and (2) of the NIRC of 1997, as amended, the acceptable foreign currency exchange proceeds have been duly accounted for in accordance with BSP rules and regulations; 53 As regards the taxpayer's input VAT being refunded : 6. the input taxes are not transitional input taxes; 54 7. the input taxes are due or paid; 55 8. the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributed to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume; 56 and 9. the input taxes have not been applied against output taxes during and in the succeeding quarters. 57 On the basis of afore-enumerated requisites, the Court shall now determine whether petitioner is entitled to a refund or tax credit of input tax on VAT zero-rated sales. Petitioner's administrative and judicial claims were timely filed Anent the first requisite, this Court has already ruled that petitioner's administrative claim was seasonably filed on December 23, 2009, per its Resolution dated September 1, 2010. 58 With regard to the second requisite, which is directly related to this Court's jurisdiction over the present Petition for Review , the Supreme Court has decreed that this Court has acquired jurisdiction over the case. In its Resolution dated October 11, 2017 rendered in G.R. No. 202507, 59 the High Court ruled in this wise: "The CTA erred in ruling that the petitioner's judicial claim was prematurely filed. In dismissing the petition for review filed before the tax court, the CTA First Division imposed strict compliance with the 120+30-day periods applied in claims for refunds or tax credit of input tax, as required under Section 112 of the NIRC x x x. xxx xxx xxx In CIR v. San Roque Power Corporation , 60 the Court indeed reiterated the need for parties to satisfy the foregoing provisions on the 120+30-day periods. Non-compliance therewith constitutes a violation of the doctrine of exhaustion of administrative remedies, which then renders the immediate filing of a CTA petition premature and without a cause of action. The CTA does not acquire jurisdiction over the petition; the dismissal of the petition becomes a necessary consequence. It should however be emphasized that in the same case of San Roque , the Court provided an exception to the general rule that mandates strict compliance, as it considered jurisprudence and a BIR issuance in effect prior to the Court's promulgation of its decision in Aichi. The Court clarified: [S]trict compliance with the 120+30[-]day periods is necessary for such a claim to prosper, whether before, during, or after the effectivity of the Atlas doctrine, except for the period from the issuance of BIR Ruling No. DA-489-03 on 10 December 2003 to 6 October 2010 when the Aichi doctrine was adopted , which again reinstated the 120+30[-]day periods as mandatory and jurisdictional. (Emphasis supplied) It is pertinent that the petitioner's administrative and judicial claims for its unutilized input VAT payments were filed on December 23, 2009 and March 30, 2009, respectively. The petition for review filed with the CTA was brought during the effectivity of BIR Ruling No. DA-489-03, by which the BIR expressly declared that 'the taxpayer-claimant need not wait for the lapse of the 120-day period before it could seek judicial relief with the CTA by way of Petition for Review.' From the time BIR Ruling No. DA-489-03 was issued on December 10, 2003, taxpayers could rely on its provisions until the Court's issuance of its decision in Aichi on October 6, 2010, where the Court held that the 120+30-day periods in Section 112 of the NIRC are mandatory and jurisdictional. This doctrine was reiterated by the Court in the recent case of Visayas Geothermal Power Company v. Commissioner of Internal Revenue . Given the circumstances, the petitioner's filing of the CTA petition on March 30, 2010, and without waiting for the CIR's action on its administrative claim, was acceptable . The tax court validly acquired jurisdiction over the case ; its ground for the dismissal of the petition was without legal basis." (Emphases and underscoring added) Clearly, petitioner has complied with the first and second requisites, i.e., that the administrative and judicial claims were both timely filed. Petitioner is a VAT-registered taxpayer As stipulated by the parties, 61 petitioner is registered with the BIR as a VAT entity under Certificate of Registration Number OCN 9RC000057089. Thus, petitioner has likewise shown compliance with the third requisite. Petitioner had zero-rated sales during the 1st quarter of 2008, but only in the amount of P123,908,965.20 Anent the fourth requisite, the applicable provisions are Sections 106 (A) (2) (a) (5) and 108 (B) (3) of the NIRC of 1997, as amended, which respectively provide as follows: "SEC. 106. Value-Added Tax on Sale of Goods or Properties . (A) Rate and Base of Tax. x x x xxx xxx xxx (2) The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: (a) Export Sales . The term 'export sales' means: xxx xxx xxx (5) Those considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, and other special laws "; (Emphases added) "SEC. 108. Value-Added Tax on Sale of Services and Use or Lease of Properties . xxx xxx xxx (B) Transactions Subject to Zero Percent (0%) Rate . The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: xxx xxx xxx (3) Services rendered to persons or entities whose exception under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate "; (Emphases added) Relative to the foregoing provisions, Sections 4.106-5 and 4.108-5 of Revenue Regulations (RR) No. 16-2005, 62 as amended by RR No. 04-2007, 63 which implements the aforecited provisions of the NIRC of 1997, as amended, also respectively provide as follows: "SEC. 4.106-5. Zero-Rated Sales of Goods or Properties. x x x The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: (a) Export Sales . 'Export Sales' shall mean: xxx xxx xxx (5) Transactions considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, and other special laws . 'Considered export sales under Executive Order No. 226' shall mean the Philippine port F.O.B. value determined from invoices, bills of lading, inward letters of credit, landing certificates, and other commercial documents, of export products exported directly by a registered export producer, or the net selling price of export products sold by a registered export producer to another export producer, or to an export trader that subsequently exports the same; Provided , That sales of export products to another producer or to an export trader shall only be deemed export sales when actually exported by the latter, as evidenced by landing certificates or similar commercial documents; Provided, further , That pursuant to EO 226 and other special laws, even without actual exportation, the following shall be considered constructively exported: (1) sales to bonded manufacturing warehouses of export-oriented manufacturers; (2) sales to export processing zones pursuant to Republic Act (RA) Nos. 7916, as amended, 7903, 7922 and other similar export processing zones; 3) sale to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority pursuant to RA 7227; (4) sales to registered export traders operating bonded trading warehouses supplying raw materials in the manufacture of export products under guidelines to be set by the Board in consultation with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC); (5) sales to diplomatic missions and other agencies and/or instrumentalities granted tax "immunities, of locally manufactured, assembled or repacked products whether paid for in foreign currency or not." (Emphases added) "SEC. 4.108-5. Zero-Rated Sale of Services . xxx xxx xxx (b) Transactions Subject to Zero Percent (0%) VAT Rate. The following services performed in the Philippines by a VAT-registered person shall be subject to zero percent (0%) VAT rate: xxx xxx xxx (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate" ; (Emphases added) One of the special laws mentioned in the above provision, which specifically applies to this case, is Republic Act (RA) No. 7916, as amended by RA No. 8748, otherwise known as "The Special Economic Zone Act of 1995." Sections 8 and 24 thereof respectively provide as follows: "SECTION 8. ECOZONE to be Operated and Managed as Separate Customs Territory. The ECOZONE shall be managed and operated by the PEZA as separate customs territory. The PEZA is hereby vested with the authority to issue certificates of origin for products manufactured or processed in each ECOZONE in accordance with the prevailing rules of origin , and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance." (Emphases supplied) "SECTION 24. Exemption from National and Local Taxes. Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE . x x x." (Emphases supplied) On the basis of the aforecited provisions, since the Ecozone is viewed as a foreign territory by legal fiction, sales of goods and services made by a VAT-registered person in the Philippine customs territory to an entity registered and operating within the Ecozone are considered exports to a foreign country subject to zero percent (0%) VAT. This was elucidated by the Supreme Court in Commissioner of Internal Revenue vs. Toshiba Information Equipment (Phils.), Inc. , 64 to wit: "This Court agrees, however, that PEZA-registered enterprises, which would necessarily be located within ECOZONES, are VAT-exempt entities , not because of Section 24 of Rep. Act No. 7916, as amended, which imposes the five percent (5%) preferential tax rate on gross income of PEZA-registered enterprises, in lieu of all taxes; but, rather, because of Section 8 of the same statute which establishes the fiction that ECOZONES are foreign territory . x x x An ECOZONE or a Special Economic Zone has been described as . . . [S]elected areas with highly developed or which have the potential to be developed into agro-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds arc fixed or delimited by Presidential Proclamations. An ECOZONE may contain any or all of the following: industrial estates (IEs), export processing zones (EPZs), free trade zones and tourist/recreational centers. The national territory of the Philippines outside of the proclaimed borders of the ECOZONE shall be referred to as the Customs Territory. Section 8 of Rep. Act No. 7916, as amended, mandates that the PEZA shall manage and operate the ECOZONES as a separate customs territory; thus, creating the fiction that the ECOZONE is a foreign territory. As a result, sales made by a supplier in the Customs Territory to a purchaser in the ECOZONE shall be treated as an exportation from the Customs Territory. Conversely, sales made by a supplier from the ECOZONE to a purchaser in the Customs Territory shall be considered as an importation into the Customs Territory. Given the preceding discussion, what would be the VAT implication of sales made by a supplier from the Customs Territory to an ECOZONE enterprise? The Philippine VAT system adheres to the Cross Border Doctrine, according to which, no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Hence, actual export of goods and services from the Philippines to a foreign country must be free of VAT ; while, those destined for use or consumption within the Philippines shall be imposed with ten percent (10%) VAT." (Emphases supplied) In other words, while an ecozone is geographically within the Philippines, it is deemed a separate customs territory and is regarded in law as foreign soil. Sales by suppliers from outside the borders of the ecozone to this separate customs territory are deemed exports and treated as export sales. These sales are zero-rated or subject to tax rate of zero percent. 65 Based on Sections 106 (A) (2) (a) (5) and 108 (B) (3) of the NIRC of 1997, as amended, the following essential elements must be present in order for an export sale to qualify for VAT zero-rating under: 1. the sale was made by a VAT registered person; and 2. there was sale of goods or services to an entity entitled to incentives under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987 ("OIC"), and other special laws. As regards the first essential element, petitioner is a VAT-registered entity, as already established earlier. Relative to the second essential element, any VAT registered person claiming VAT zero-rated sales, such as petitioner, must present, among others, the following documents: 1. the sales invoice or official receipt as proof of sale of goods or services; and 2. any proof of the buyer's entitlement to tax incentives under other special laws ( i.e., Certificates of Registration with the PEZA pursuant to RA No. 7916, as amended, for the pertinent period/taxable year). For the first type of document, in proving its zero-rated sales, petitioner must comply with the pertinent invoicing requirements, containing all the required information under Section 113 (A) and (B) of the NIRC of 1997, as amended, to wit: "SEC. 113. Invoicing and Accounting Requirements for VAT-registered Persons. (A) Invoicing Requirements. A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice or VAT Official Receipt. The following information shall be indicated in the VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); (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: Provided , That: (a) The amount of the tax shall be shown as a separate item in the invoice or receipt; (b) If the sale is exempt from value-added tax, the term 'VAT-exempt sale' shall be written or printed prominently on the invoice or receipt; (c) If the sale is subject to zero percent (0%) value-added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; (d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the value-added tax on each portion of the sale shall be shown on the invoice or receipt: Provided , That the seller may issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale. (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; and (4) In the case of sales in the amount of One thousand pesos (P1,000) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and Taxpayer Identification Number (TIN) of the purchaser, customer or client." The foregoing provisions are further implemented by Section 4.113-1 (A) and (B) of RR No. 16-05, as amended, to wit "SEC. 4.113-1. Invoicing Requirements. (A) A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or 'VAT official receipt.' All purchases covered by invoices/receipts other than VAT Invoice/VAT Official Receipt shall not give rise to any input tax. VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt . The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his TIN; (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided , That: (a) The amount of tax shall be shown as a separate item in the invoice or receipt; (b) If the sale is exempt from VAT, the term 'VAT-exempt sale' shall be written or printed prominently on the invoice or receipt; (c) If the sale is subject to zero percent (0%) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; (d) If the sale involves goods, properties or services some of which are subject to and some of which are VAT zero-rated or VAT-exempt, the invoice or receipt shall clearly indicate the break-down of the sale price between its taxable, exempt and zero-rated components, and the calculation of the VAT on each portion of the sale shall be shown on the invoice or receipt. The seller has the option to issue separate invoices or receipts for the taxable, exempt, and zero-rated components of the sale. (3) In the case of sales in the amount of one thousand peso (P1,000.00) or more where the sale or transfer is made to a VAT-registered person, the name, business style, if any, address and TIN of the purchaser, customer or client, shall be indicated in addition to the information required in (1) and (2) of this Section." In addition to the above requirements, the invoices and official receipts must be duly registered with the BIR as prescribed under Section 237 in relation to Section 238 of the NIRC of 1997, as amended, to wit: "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: x x x" "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." In Eastern Telecommunications Philippines, Inc. vs. Commissioner of Internal Revenue , 66 the Supreme Court held: "An applicant for a claim for tax refund or tax credit must not only prove entitlement to the claim but also compliance with all the documentary and evidentiary requirements. Consequently, the old CTA, as affirmed by the CTA en banc , correctly ruled that a claim for the refund of creditable input taxes must be evidenced by a VAT invoice or official receipt in accordance with Section 110 (A) (1) of the NIRC. Sections 237 and 238 of the same Code as well as Section 4.108-1 of RR No. 7-95 provide for the invoicing requirements that all VAT-registered taxpayers should observe , such as: (a) the BIR Permit to Print; (b) the Tax Identification Number of the VAT-registered purchaser; and (c) the word 'zero-rated' imprinted thereon. Thus, the failure to indicate the words 'zero-rated' on the invoices and receipts issued by a taxpayer would result in the denial of the claim for refund or tax credit. x x x." (Emphasis added) Based on the foregoing jurisprudential pronouncements, it is vital for a taxpayer claiming tax refund/credit on its input taxes attributable to its zero-rated sales to prove that it had followed the invoicing requirements under the law. In its Quarterly VAT Return for the 1st quarter of 2008, 67 petitioner declared total sales amounting to P257,254,403.16, which included zero-rated sales/receipts of P199,197,257.57, as shown as follows: Vatable Sales/Receipts P57,054,748.75 Zero-Rated Sales/Receipts 199,197,257.57 Exempt Sales/Receipts 1,002,396.84 Total Sales/Receipts P257,254,403.16 Petitioner submitted the invoices and official receipts in support of its declared zero-rated sales, which were sequentially enumerated in petitioner's Schedule of Zero-rated Sales . 68 After examining the sum of the amounts in the said Schedule, this Court observes that there is a discrepancy in the amount of P235,556.93, which should be disallowed outright on the ground that the same is without supporting zero-rated invoice or official receipt, viz.: Zero-Rated Sales for the 1st Quarter of 2008 Total Zero-Rated Sales per VAT Return P199,197,257.57 Total Zero-Rated Sales per Schedule For the month of January 2008 (Exhibit "P-86") 69,967,257.15 For the month of February 2008 (Exhibit "P-87") 68,398,247.35 For the month of March 2008 (Exhibit "P-88") 60,596,196.14 Total P198,961,700.64 Difference P235,556.93 Upon further examination of the invoices and official receipts supporting its claimed zero-rated sales, in addition to the above disallowance, the sales in the total amount of P42,541,710.08 should likewise be disallowed since the invoices related to the pertinent sale of goods are not stamped or printed with the phrase "zero-rated sales," and some of its sale of services are without supporting VAT "zero-rated" official receipts, the details of which are as follows: Name of Customer Invoice Date 69 Amount of Sales Exhibit No. Supported by invoice not stamped/printed with the phrase "zero-rated sales" Franke Foodservice Systems Phils., Inc. 1/3/2008 P16,000.00 "P-23-42" Franke Foodservice Systems Phils., Inc. 1/3/2008 1,900.00 "P-23-43" Franke Foodservice Systems Phils., Inc. 1/8/2008 12,800.00 "P-23-108" Franke Foodservice Systems Phils., Inc. 1/8/2008 1,900.00 "P-23-109" Franke Foodservice Systems Phils., Inc. 1/10/2008 16,000.00 "P-23-162" Franke Foodservice Systems Phils., Inc. 1/10/2008 9,600.00 "P-23-163" Franke Foodservice Systems Phils., Inc. 1/11/2008 9,600.00 "P-23-203" Franke Foodservice Systems Phils., Inc. 1/14/2008 12,800.00 "P-23-221" Franke Foodservice Systems Phils., Inc. 1/21/2008 19,200.00 "P-23-344" Franke Foodservice Systems Phils., Inc. 1/21/2008 16,000.00 "P-23-345" Franke Foodservice Systems Phils., Inc. 1/21/2008 1,900.00 "P-23-346" Hitachi Global Storage Technologies Philippines 1/22/2008 54,683.02 "P-23-369" Franke Foodservice Systems Phils., Inc. 1/23/2008 950.00 "P-23-384" Franke Foodservice Systems Phils., Inc. 1/23/2008 12,800.00 "P-23-385" Franke Foodservice Systems Phils., Inc. 1/23/2008 950.00 "P-23-386" Franke Foodservice Systems Phils., Inc. 1/25/2008 12,800.00 "P-23-417" Franke Foodservice Systems Phils., Inc. 1/25/2008 9,600.00 "P-23-418" Franke Foodservice Systems Phils., Inc. 1/25/2008 13,200.00 "P-23-419" Franke Foodservice Systems Phils., Inc. 1/30/2008 9,600.00 "P-23-496" Franke Foodservice Systems Phils., Inc. 1/30/2008 16,000.00 "P-23-497" Franke Foodservice Systems Phils., Inc. 1/30/2008 2,850.00 "P-23-498" Hitachi Global Storage Technologies Philippines 1/30/2008 18,413.55 "P-23-505" AGC Flat Glass Phils., Inc. 1/31/2008 5,050,406.92 "P-23-552" AGC Flat Glass Phils., Inc. 1/31/2008 6,400,501.38 "P-23-553" Alplus-Sunpower Bldg. 2 1/31/2008 1,617,915.53 "P-23-574" Imasen Philippine Manufacturing Corp. 1/31/2008 140,930.00 "P-23-581" AGC Flat Glass Phils., Inc. 1/31/2008 518,541.72 "P-23-594" AGC Flat Glass Phils., Inc. 1/31/2008 200.00 "P-23-617" Alplus-Samsung C120 2/2/2008 203,130.00 "P-23-628" AGC Flat Glass Phils., Inc. 2/2/2008 58,855.70 "P-23-648" Franke Foodservice Systems Phils., Inc. 2/7/2008 16,000.00 "P-23-743" Franke Foodservice Systems Phils., Inc. 2/7/2008 12,800.00 "P-23-744" Franke Foodservice Systems Phils., Inc. 2/7/2008 950.00 "P-23-745" Franke Foodservice Systems Phils., Inc. 2/8/2008 22,400.00 "P-23-747" Franke Foodservice Systems Phils., Inc. 2/8/2008 1,900.00 "P-23-748" Franke Foodservice Systems Phils., Inc. 2/11/2008 12,800.00 "P-23-782" AMI Semiconductor Philippines, Inc. 2/12/2008 556,672.50 "P-23-803" Franke Foodservice Systems Phils., Inc. 2/13/2008 12,800.00 "P-23-832" Franke Foodservice Systems Phils., Inc. 2/13/2008 2,850.00 "P-23-833" Franke Foodservice Systems Phils., Inc. 2/18/2008 16,000.00 "P-23-881" ISPL (Phils.), Inc. 2/18/2008 45,600.00 "P-23-886" Franke Foodservice Systems Phils., Inc. 2/21/2008 9,600.00 "P-23-937" Franke Foodservice Systems Phils., Inc. 2/21/2008 1,900.00 "P-23-938" Franke Foodservice Systems Phils., Inc. 2/22/2008 9,600.00 "P-23-957" Franke Foodservice Systems Phils., Inc. 2/22/2008 1,900.00 "P-23-958" ISPL Phils., Inc. 2/22/2008 45,600.00 "P-23-971" Fastech Electronique, Inc. 2/22/2008 5,000.00 "P-23-978" Franke Foodservice Systems Phils., Inc. 2/27/2008 19,200.00 "P-23-995" Franke Foodservice Systems Phils., Inc. 2/27/2008 9,600.00 "P-23-996" Franke Foodservice Systems Phils., Inc. 2/27/2008 3,200.00 "P-23-997" Franke Foodservice Systems Phils., Inc. 2/27/2008 19,800.00 "P-23-998" Franke Foodservice Systems Phils., Inc. 2/27/2008 19,800.00 "P-23-999" Franke Foodservice Systems Phils., Inc. 2/27/2008 1,900.00 "P-23-1000" Franke Foodservice Systems Phils., Inc. 2/27/2008 1,900.00 "P-23-1001" Franke Foodservice Systems Phils., Inc. 2/27/2008 2,400.00 "P-23-1002" ISPL Phils., Inc. 2/27/2008 45,600.00 "P-23-1003" AMI Semiconductor Philippines, Inc. 2/28/2008 185,557.50 "P-23-1016" AMI Semiconductor Philippines, Inc. 2/29/2008 43,045.00 "P-23-1116" AMI Semiconductor Philippines, Inc. 2/29/2008 5,104.00 "P-23-1117" AGC Flat Glass Phils., Inc. 2/29/2008 4,799,692.30 "P-23-1128" AGC Flat Glass Phils., Inc. 2/29/2008 5,715,507.38 "P-23-1129" Alplus-Sunpower Bldg. 2 2/29/2008 1,039,574.72 "P-23-1143" Imasen Philippine Manufacturing Corp. 2/29/2008 105,060.00 "P-23-1150" AGC Flat Glass Phils., Inc. 2/29/2008 425,776.75 "P-23-1162" Shi Mfg. & Services (Phils.), Inc. 2/29/2008 222,383.60 "P-23-1164" AMI Semiconductor Philippines, Inc. 2/29/2008 400.00 "P-23-1170" AGC Flat Glass Phils., Inc. 2/29/2008 200.00 "P-23-1185" Alplus Samsung C120 3/1/2008 201,800.00 "P-23-1201" AGC Flat Glass Phils., Inc. 3/1/2008 58,470.34 "P-23-1220" Franke Foodservice Systems Phils., Inc. 3/3/2008 1,900.00 "P-23-1236" ISPL Phil., Inc. 3/3/2008 45,600.00 "P-23-1237" Franke Foodservice Systems Phils., Inc. 3/4/2008 9,600.00 "P-23-1278" ISPL Phil., Inc. 3/5/2008 45,600.00 "P-23-1285" Franke Foodservice Systems Phils., Inc. 3/5/2008 1,600.00 "P-23-1286" Franke Foodservice Systems Phils., Inc. 3/5/2008 9,600.00 "P-23-1293" Franke Foodservice Systems Phils., Inc. 3/6/2008 1,600.00 "P-23-1303" Franke Foodservice Systems Phils., Inc. 3/7/2008 9,600.00 "P-23-1323" Franke Foodservice Systems Phils., Inc. 3/7/2008 6,400.00 "P-23-1324" Franke Foodservice Systems Phils., Inc. 3/7/2008 1,900.00 "P-23-1325" Franke Foodservice Systems Phils., Inc. 3/7/2008 1,900.00 "P-23-1326" ISPL Phil., Inc. 3/10/2008 45,600.00 "P-23-1349" ISPL Phil., Inc. 3/10/2008 45,600.00 "P-23-1350" Franke Foodservice Systems Phils., Inc. 3/10/2008 12,800.00 "P-23-1351" Franke Foodservice Systems Phils., Inc. 3/10/2008 9,600.00 "P-23-1352" Franke Foodservice Systems Phils., Inc. 3/13/2008 28,800.00 "P-23-1422" Franke Foodservice Systems Phils., Inc. 3/13/2008 1,900.00 "P-23-1423" Franke Foodservice Systems Phils., Inc. 3/17/2008 22,400.00 "P-23-1460" Franke Foodservice Systems Phils., Inc. 3/17/2008 1,900.00 "P-23-1461" ISPL Phil., Inc. 3/17/2008 45,600.00 "P-23-1463" ISPL Phil., Inc. 3/19/2008 45,600.00 "P-23-1508" ISPL Phil., Inc. 3/19/2008 45,600.00 "P-23-1509" Franke Foodservice Systems Phils., Inc. 3/24/2008 16,000.00 "P-23-1549" Franke Foodservice Systems Phils., Inc. 3/24/2008 16,000.00 "P-23-1550" Franke Foodservice Systems Phils., Inc. 3/24/2008 9,600.00 "P-23-1551" Franke Foodservice Systems Phils., Inc. 3/24/2008 1,200.00 "P-23-1552" Franke Foodservice Systems Phils., Inc. 3/24/2008 800.00 "P-23-1553" Franke Foodservice Systems Phils., Inc. 3/24/2008 3,000.00 "P-23-1554" Franke Foodservice Systems Phils., Inc. 3/27/2008 9,600.00 "P-23-1605" Franke Foodservice Systems Phils., Inc. 3/27/2008 1,900.00 "P-23-1606" Franke Foodservice Systems Phils., Inc. 3/27/2008 12,800.00 "P-23-1607" ISPL Phil., Inc. 3/27/2008 45,600.00 "P-23-1610" Franke Foodservice Systems Phils., Inc. 3/31/2008 16,500.00 "P-23-1657" Franke Foodservice Systems Phils., Inc. 3/31/2008 12,800.00 "P-23-1658" Franke Foodservice Systems Phils., Inc. 3/31/2008 9,600.00 "P-23-1659" Franke Foodservice Systems Phils., Inc. 3/31/2008 1,900.00 "P-23-1660" Shi Mfg. & Services (Phils.), Inc. 3/31/2008 6,500.00 "P-23-1702" Shi Mfg. & Services (Phils.), Inc. 3/31/2008 6,500.00 "P-23-1703" AGC Flat Glass Phils., Inc. 3/31/2008 4,807,314.46 "P-23-1731" AGC Flat Glass Phils., Inc. 3/31/2008 5,903,710.89 "P-23-1732" Alplus-Sunpower Bldg. 2 3/31/2008 1,184,102.40 "P-23-1747" Imasen Philippine Manufacturing Corp. 3/31/2008 150,450.00 "P-23-1753" AGC Flat Glass Phils., Inc. 3/31/2008 516,513.71 "P-23-1765" Shi Mfg. & Services (Phils.), Inc. 3/31/2008 843,849.54 "P-23-1767" AMI Semiconductor Philippines, Inc. 3/31/2008 400.00 "P-23-1774" AGC Flat Glass Phils., Inc. 3/31/2008 200.00 "P-23-1789" Sub-total 41,977,912.91 Sales of service not supported by "zero-rated" official receipts Samsung Electro-Mechanic Philippines 1/2/2008 4,500.00 "P-23-27" Amkor Technology Philippines, Inc. 1/31/2008 36,400.00 "P-23-601" Analog Devices Gen. Trias 1/31/2008 5,040.00 "P-23-603" Cirtek Electronics Corporation 1/31/2008 2,050.00 "P-23-607" Continental Temic Electronics Phils. 1/31/2008 4,200.00 "P-23-608" Continental Temic Electronics Phils. 1/31/2008 2,500.00 "P-23-609" Integrated Microelectronics, Inc.-Isahaya 1/31/2008 5,400.00 "P-23-610" Kyocera Kinseki Philippines, Inc. 1/31/2008 1,650.00 "P-23-612" MSM Manila, Inc. 1/31/2008 5,000.00 "P-23-614" ON Semiconductor Phils., Inc. 1/31/2008 700.00 "P-23-619" Ibiden Philippines, Inc. 1/31/2008 5,200.00 "P-23-621" TANN Philippines 1/31/2008 375.00 "P-23-622" Temic Automotive Philippines 1/31/2008 2,500.00 "P-23-623" Yutaka Manufacturing Philippines., Inc. 1/31/2008 12,500.00 "P-23-625" Samsung Electro-Mechanic Philippines 2/2/2008 4,500.00 "P-23-649" Air Water Philippines, Inc. 2/29/2008 3,632.40 "P-23-1167" Amkor Technology Philippines, Inc. 2/29/2008 36,400.00 "P-23-1168" Analog Devices Gen. Trias 2/29/2008 5,040.00 "P-23-1171" Austria Microsystems Phils., Inc. 2/29/2008 2,500.00 "P-23-1172" Cirtek Electronics Corporation 2/29/2008 2,050.00 "P-23-1175" Continental Temic Electronics Phils. 2/29/2008 4,000.00 "P-23-1176" Continental Temic Electronics Phils. 2/29/2008 2,500.00 "P-23-1177" Integrated Microelectronics, Inc.-Isahaya 2/29/2008 5,400.00 "P-23-1178" Ju-Young Electronics Phils., Inc. 2/29/2008 200.00 "P-23-1179" Kyocera Kinseki Philippines, Inc. 2/29/2008 1,950.00 "P-23-1180" Littlefuse Philippines, Inc. 2/29/2008 3,300.00 "P-23-1181" MSM Manila, Inc. 2/29/2008 5,000.00 "P-23-1182" Orient Semiconductor Electronics 2/29/2008 2,670.00 "P-23-1183" Samsung Electro-Mechanic Philippines 2/29/2008 28,500.00 "P-23-1186" ON Semiconductor Phils., Inc. 2/29/2008 700.00 "P-23-1188" Ibiden Philippines, Inc. 2/29/2008 5,200.00 "P-23-1190" TANN Philippines 2/29/2008 375.00 "P-23-1191" Temic Automotive Philippines 2/29/2008 2,500.00 "P-23-1192" Yutaka Manufacturing Philippines, Inc. 2/29/2008 7,500.00 "P-23-1195" Samsung Electro Mechanic Philippines 3/1/2008 4,500.00 "P-23-1221" Ionics Ems, Inc. Plant 3 3/18/2008 77,500.00 "P-23-1494" NSG Micro Optics Phils., Inc. 3/31/2008 152,301.65 "P-23-1705" Air Water Philippines, Inc. 3/31/2008 3,768.12 "P-23-1771" Amkor Technology Philippines, Inc. 3/31/2008 36,400.00 "P-23-1772" Analog Devices Gen. Trias 3/31/2008 5,040.00 "P-23-1775" Cirtek Electronics Corporation 3/31/2008 2,410.00 "P-23-1778" Continental Temic Electronics Phils. 3/31/2008 6,000.00 "P-23-1779" Continental Temic Electronics Phils. 3/31/2008 2,500.00 "P-23-1780" Integrated Microelectronics, Inc.-Isahaya 3/31/2008 5,400.00 "P-23-1781" Ju-Young Electronics Phils., Inc. 3/31/2008 200.00 "P-23-1782" Kyocera Kinseki Philippines, Inc. 3/31/2008 1,500.00 "P-23-1783" Littlefuse Philippines, Inc. 3/31/2008 3,600.00 "P-23-1784" MSM Manila, Inc. 3/31/2008 5,000.00 "P-23-1785" Orient Semiconductor Electronics 3/31/2008 2,670.00 "P-23-1786" PASAR 3/31/2008 800.00 "P-23-1787" Samsung Electro-Mechanic Philippines 3/31/2008 23,500.00 "P-23-1790" ON Semiconductor Phils., Inc. 3/31/2008 700.00 "P-23-1792" Ibiden Philippines, Inc. 3/31/2008 5,200.00 "P-23-1794" TANN Philippines 3/31/2008 375.00 "P-23-1795" Temic Automotive Philippines 3/31/2008 2,500.00 "P-23-1796" Yutaka Manufacturing Philippines, Inc. 3/31/2008 10,000.00 "P-23-1799" Sub-total 563,797.17 GRAND TOTAL P42,541,710.08 Moreover, for the second type of document in proving zero-rated sales, it must further be established that petitioner's customers are indeed PEZA-registered entities subject to zero-rated VAT. Relative thereto, petitioner submitted the Letter of the then PEZA Director General, Lilia B. De Lima dated November 30, 2010, 70 confirming the issuance of VAT zero-rating certifications to the following clients of petitioner, to wit: No. Enterprise PEZA Reg. No. PEZA Reg. Date 2008 VAT Zero Rating No. Date Issued 1 2PI MICROWAVE TECHNOLOGY 04-35 17 May 2004 - - 2 AGC FLAT GLASS PHILIPPINES, INC. 07-33 28 May 2007, as amended on 29 June 2007 2008-561 31 January 2008 3 AICHI FORGING COMPANY OF ASIA, INC. 04-17 03 March 2004 2008-076 18 December 2007 4 AIR LIQUIDE PIPELINE UTILITIES SERVICES (ALPLUS), INC. Formerly Gateway Air Liquide Industrial Gas Co., Inc. 99-045 15 March 06 15 July 99 2008-417 22 January 2008 5 AIR WATER PHILIPPINES, INC. 02-055 23 October 2002 2008-298 16 January 2008 6 AMI SEMICONDUCTOR 04-83 22 December 2004 2008-741 7 February 2008 7 AMCOR ANAM ADVANCED PACKING, INC. 95-132 6 December 1955 - - 8 AMKOR TECHNOLOGY PHILIPPINES, INC. Formerly Amkor Technology Philippines 00-092 3 September 2003 2008-284 15 January 2008 9 AMPLUS TECHNOLOGIES, INC. 07-13-L 9 August 2007 2008-367 21 January 2008 10 ANALOG DEVICES GEN. TRIAS, INC. 95-117 6 November 1995 2008-018 12 December 2007 11 AUSTRIAMICROSYSTEM, INC. 06-10 30 January 2006 2008-629 1 February 2008 12 BELL ELECTRONICS CORPORATION 00-058 7 July 2000 - - 13 CAM MECHATRONIC (PHILS.), INC. 95-106 4 October 1995 2008-1254 21 July 2008 14 CARDINAL MRI CENTER, INC. - - - - 15 CASTEM PHILIPPINES CORPORATION 95-113 27 October 1995, as amended on 25 June 2002 2008-531 29 January 2008 16 CEBU MICROELECTRONICS, INC. 93-40 23 August 1993 2008-807 13 February 2008 17 CIRTEK ELECTRONICS CORP. 98-022 24 March 1998 2008-442 28 January 2008 18 CONTINENTAL TEMIC ELECTRONICS, INC. 04-70 10 November 2004 2008-439 23 January 2008 19 CPL PACKAGING, INC. 01-055 11 September 2001, as amended on 17 July 2007 2008-1410 3 September 2008 20 CRL ENVIRONMENTAL CORPORATION - - - - 21 EIGHTECH MANUFACTURING CORPORATION 00-102 19 December 2000 2008-280 15 January 2008 22 ESSILOR MFG. PHILIPPINES, INC. Formerly Bataan Optical, Inc. 79-04 3 April 1979, as amended on 25 January 1994 2008-257 11 January 2008 23 EUROWOOD PRODUCTS AND TECHNIQUE MFG. CORPORATION - - - - 24 FASTECH ELECTRONIQUE, INC. 96-004 15 January 96, as amended on 2 October 1998 2008-762 8 February 2008 25 FRANKE FOODSERVICE SYSTEM PHILS., INC. 00-082 16 October 2000 2008-027 12 December 2007 26 FUJIELASTOMERS MANILA CORP. 03-065 1 September 2003 2008-998 - 27 FUJITSU TEN CORPORATION OF THE PHILIPPINES 01-063 29 October 2001 2008-025 12 December 2007 28 HEREAUS ELECTRONIC MATERIALS PHILS., INC. 97-026 21 March 1997 2008-105 21 December 2007 29 HITACHI GLOBAL STORAGE TECHNOLOGIES PHILS., CORP. 94-28 11 May 1994 2008-112 27 December 2007 30 HITACHI INDUSTRIAL MACHINERY PHILIPPINES CORP. 95-59 31 May 2008 2008-342 17 January 2008 31 HOYA GLASS DISK PHILIPPINES, INC. 97-010 6 February 1997 2008-203 8 January 2008 32 IBIDEN PHILS., INC. 00-061 20 July 2000 2008-129 27 December 2007 33 IMASEND PHILIPPINES MFG., CORP. 96-114 11 January 1996 2008-159 2 January 2008 34 INTEGRATED FLOW SYSTEMS LLC. 06-72 27 November 2006 2008-1294 24 July 2008 35 INTEGRATED MICROELECTRONICS, INC. 94-59 15 August 1994, as amended on 19 September 2007 2008-266 14 January 2008 36 I-OMNI PRECISION, INC. 00-085 17 October 2000 2008-805 13 February 2008 37 IONICS EMS, INC. 00-039 17 April 2000 2008-083 19 December 2007 38 IONICS EMS, INC. 05-01-IT 06 January 2005 2008-084 19 December 2007 39 ISPL, INC. 96-068 4 June 1996, as amended on 1 July 2005 2008-816 13 February 2008 40 JGC PHILIPPINES, INC. 07-14-IT 27 February 2007 2008-291 15 January 2008 41 JU-YOUNG ELECTRONICS (PHILS.), INC. 91-044 29 November 1991 2008-605 1 February 2008 42 KATOLEC PHILIPPINES CORPORATION 96-108 17 October 1996 2008-324 17 January 2008 43 KEC-ASTRON PHILS., CORP. 96-091 2 August 1996 2008-099 21 December 2007 44 KEDICA PHILIPPINES CORPORATION 03-039 3 June 2003 2008-592 31 January 2008 45 KOMYO PHILIPPINE LOGISTIC SERVICE CORPORATION 98-010 3 February 1998 2008-277 15 January 2008 46 KYOCERA KINSEKI PHILS., INC. 97-016 12 December 2007 2008-007 12 December 2007 47 LAGUNA ELECTRONICS, INC. 93-02 17 October 1998 2008-235 10 January 2008 48 LEXMARK RESEARCH & DEVELOPMENT CORPORATION 01-009-IT 17 July 2001 2008-837 14 February 2008 49 LITTELFUSE PHILS., INC. 00-060 14 July 2000 2008-691 5 February 2008 50 LUZON ELECTRONICS TECHNOLOGY, INC. 95-121 14 November 1995 2008-236 10 January 2008 51 MAENO GIKEN, INC. 01-051 21 August 2001 2008-427 23 January 2008 52 MASUDA PHILIPPINES, INC. 93-66 28 December 1993 2008-265 14 January 2008 53 MINDANAO SILICON METAL CORPORATION - - - - 54 MITSUBA MANUFACTURING BATANGAS CORPORATION 99-081 23 December 1999, as amended on 12 April 2007 2008-349 18 January 2008 55 MITSUBA PHILIPPINES CORP. 96-107 14 October 1996, as amended on 12 January 1998 2008-694 5 February 2008 56 MME TECHNOLOGIES, INC. 99-071 25 November 1999 - - 57 MSM MANILA, INC. Formerly Precision Springs Manila, Incorporated 97-009 29 January 1997, as amended on 29 June 2004 2008-384 21 January 2008 58 NIDEC PHILIPPINES CORP. 2008-C-93 20 December 2007 2008-093 20 December 2007 59 NIDEC PHILIPPINES CORP. 01-028 4 April 2001 2008-207 8 January 2008 60 NIKKO MATERIALS PHILIPPINES, INC. 96-080 3 July 1996 2008-231 10 January 2008 61 NSG MICRO OPTICS PHILS., INC. 03-068 10 September 2003 2008-109 21 December 2007 62 NT PHILIPPINES, INC. 93-68 29 December 1993, as amended on 27 November 1996 2008-0594 31 January 2008 63 NXP SEMICONDUCTORS PHILIPPINES, INC. 94-77 28 September 1994, as amended on 3 January 2007 2008-476 28 January 2008 64 ON SEMICONDUCTOR PHILS., INC. 07-36 2 July 2007 2008-217 8 January 2008 65 OPTODEV, INC. 97-051 10 July 1997 2008-232 10 January 2008 66 ORIENT SEMICONDUCTOR ELECTRONICS PHILIPPINES, INC. 96-102 3 October 1996 2008-950 29 February 2008 67 PHILIPPINES ASSOCIATED SMELTING & REFINING CORP. 82-40 23 September 1982 2008-218 9 January 2008 68 PHILIPPINE TOEI CHEMICAL CORPORATION 95-135 12 December 1995 2008-1119 2 May 2008 69 PRICON MICROELECTRONICS, INC. 96-058 14 May 1996, as amended on 10 May 2005 2008-672 4 February 2008 70 PSI TECHNOLOGIES, INC. 04-34 17 May 2004 2008-1015 24 March 2008 71 ROHM ELECTRONICS PHILS., INC. 00-081 09 October 2000 2008-170 3 January 2008 72 SAMSUNG ELECTRO-MECHANICS PHILS., CORP. 97-074 16 October 1997 2008-138 27 December 2008 73 SAN TECHNOLOGY, INC. 89-08 03 February 1989 2008-537 7 January 2008 74 SANRITSU GREAT INTERNATIONAL CORP. 95-76 3 August 1995, as amended on 26 July 2006 2008-800 13 February 2008 75 SHELL GAS EASTERN, INC. Formerly Shell Gas Phils., Inc. 81-07 23 September 1981, as amended on 29 March 2007 2008-0925 27 February 2008 76 SHI MANUFACTURING & SERVICES (PHILS.), INC. 01-008 26 January 2001 2008-254 11 January 2008 77 SHIDENGEN PHILIPPINES CORPORATION 95-41 6 April 1995 2008-445 28 January 2008 78 SHIN-ETSU MAGNETIC PHILS., INC. 99-048 05 August 1999 2008-150 28 December 2007 79 SHINKOZAN CORP. (MEGASTAMP) - - - - 80 SHOWA ALUMINUM MANUFACTURING PHILS., CORPORATION 96-007 15 January 1996 2008-438 23 January 2008 81 SUNPOWER PHILIPPINES MANUFACTURING LTD. (BRANCH OFFICE) 03-055 20 October 2006 2008-457 28 January 2008 82 TANN PHILIPPINES 02-016 16 April 2022 2008-0252 11 January 2008 83 TEAL PACIFIC, LLC - - - - 84 TEAM PACIFIC CORP. 28-Oct 18 March 2010 - - 85 TECHNOL EIGHT PHILS. CORPORATION 05-52 1 September 2005 2008-043 13 December 2007 86 TEMIC AUTOMOTIVE (PHILS.), INC. 04-33 17 May 2004 2008-435 23 January 2008 87 TI (PHILIPPINES), INC. Formerly Texas Instruments Clark 01-010 1 March 2001, as amended on 07 June 2007 2008-0451 28 January 2008 88 TOKYO STEEL PHILIPPINES CORP. 97-036 07 May 1997 2008-1032 27 March 2008 89 TONG HSING ELECTRONICS (PHILIPPINES), INC. 94-72 19 September 1994 2008-490 28 January 2008 90 TST, INC. - - - - 91 VISHAY (PHILS.), INC. 04-32 17 May 2004 2008-215 8 January 2008 92 WU KONG SINGAPORE PTE., LTD. 95-21 17 February 1995 2008-096 20 December 2007 93 YAMAHA MOTORS PHILS., INC. 07-01-DM 5 September 2007 94 YKY PARTS CORPORATION 03-040 3 June 2003 2008-0614 1 February 2008 95 YOKOMAHA TIRE PHILIPPINES - - - - 96 YUTAKA MANUFACTURING (PHILIPPINES), INC. 94-31 23 May 1994 2008-394 21 January 2008 Notably, in the said November 30, 2010 Letter of Director General De Lima, the PEZA indicated that the following entities are: (1) with no certification issued, (2) with cancelled certification, (3) not PEZA-registered, (4) registered only in year 2010, or (5) not entitled to VAT zero-rating, to wit: 1. No Certification Issued: 2PI Microwave Technology Bell Electronics Corporation Fujielastomers Manila Corp. MME Technologies, Inc. 2. Cancelled dated July 11, 2002 (Taken over Amkor Tech): Amcor Anam Advanced Packing, Inc. 3. Not registered with PEZA: Cardinal MRI Center, Inc. CRL Environment Corporation Eurowood Products and Technique Mfg. Corporation Mindanao Silicon Metal Corporation Shinkozan Corp. (Megastamp) Teal Pacific, LLC TST, Inc. Yokohama Tire Philippines 4. Registered with PEZA only in 2010: Team Pacific Corp. 5. Not entitled to VAT zero-rating: Yamaha Motors Phils., Inc. Moreover, the following entities were neither listed in the November 30, 2010 Letter of Director General De Lima, nor have PEZA certification for VAT zero-rating, to wit: 1. Amkor Anam Technology-P1 2. Eightech Tectron Phils., Inc. 3. HHIC-Phil., Inc. 4. Nidec Subic Philippines Corporation 5. Pilipinas Shell Petroleum Corp.-Shell Gas Eas 6. PSI Technologies Laguna, Inc. 7. Tong Hsing 8. Walk-In Customers In view the above findings, the sales made to the foregoing entities in the total amount of P20,899,537.41 shall not be accorded VAT zero-rating, detailed as follows: Name of Customer Invoice Date 71 Amount of Sales Exhibit No. 1. No Certification Issued by PEZA 2PI Microwave Technology, Inc. 2/29/2008 P400.00 "P-23-1184" 2PI Microwave Technology, Inc. 1/31/2008 400.00 "P-23-616" 2PI Microwave Technology, Inc. 3/31/2008 400.00 "P-23-1788" Bell Electronics Corporation 1/2/2008 20,000.00 "P-23-10" Bell Electronics Corporation 1/31/2008 52,344.96 "P-23-576" Bell Electronics Corporation 1/31/2008 480.00 "P-23-605" Bell Electronics Corporation 2/2/2008 (2,250.00) "P-23-627" Bell Electronics Corporation 2/2/2008 20,000.00 "P-23-632" Bell Electronics Corporation 2/29/2008 3,600.00 "P-23-1115" Bell Electronics Corporation 2/29/2008 26,873.44 "P-23-1145" Bell Electronics Corporation 2/29/2008 480.00 "P-23-1173" Bell Electronics Corporation 3/1/2008 20,000.00 "P-23-1205" Bell Electronics Corporation 3/31/2008 37,355.02 "P-23-1749" Bell Electronics Corporation 3/31/2008 480.00 "P-23-1776" Fujielastomers Manila Corp. 1/7/2008 45,839.74 "P-23-90" Fujielastomers Manila Corp. 1/15/2008 44,498.60 "P-23-254" Fujielastomers Manila Corp. 1/21/2008 53,459.32 "P-23-347" Fujielastomers Manila Corp. 1/25/2008 58,339.44 "P-23-436" Fujielastomers Manila Corp. 2/4/2008 88,626.25 "P-23-676" Fujielastomers Manila Corp. 2/8/2008 37,758.68 "P-23-770" Fujielastomers Manila Corp. 2/18/2018 64,561.26 "P-23-902" Fujielastomers Manila Corp. 2/28/2008 60,309.75 "P-23-1064" Fujielastomers Manila Corp. 2/29/2008 40,406.73 "P-23-1118" Fujielastomers Manila Corp. 3/7/2008 40,358.27 "P-23-1344" Fujielastomers Manila Corp. 3/13/2008 56,173.73 "P-23-1444" Fujielastomers Manila Corp. 3/26/2008 91,251.56 "P-23-1592" Fujielastomers Manila Corp. 3/31/2008 36,262.87 "P-23-1691" MME Technologies, Inc. 1/2/2008 20,705.50 "P-23-17" MME Technologies, Inc. 1/4/2008 16,750.11 "P-23-71" MME Technologies, Inc. 1/7/2008 18,276.31 "P-23-94" MME Technologies, Inc. 1/7/2008 16,313.18 "P-23-99" MME Technologies, Inc. 1/7/2008 22,503.52 "P-23-101" MME Technologies, Inc. 1/9/2008 18,336.50 "P-23-149" MME Technologies, Inc. 1/10/2008 13,945.88 "P-23-169" MME Technologies, Inc. 1/14/2008 31,895.50 "P-23-237" MME Technologies, Inc. 1/15/2008 20,746.18 "P-23-255" MME Technologies, Inc. 1/15/2008 12,589.20 "P-23-261" MME Technologies, Inc. 1/15/2008 10,294.96 "P-23-264" MME Technologies, Inc. 1/16/2008 21,780.72 "P-23-297" MME Technologies, Inc. 1/17/2008 11,884.34 "P-23-305" MME Technologies, Inc. 1/18/2019 19,316.05 "P-23-329" MME Technologies, Inc. 1/21/2008 18,764.85 "P-23-352" MME Technologies, Inc. 1/21/2008 9,381.71 "P-23-356" MME Technologies, Inc. 1/22/2008 4,025.19 "P-23-380" MME Technologies, Inc. 1/23/2008 10,426.00 "P-23-394" MME Technologies, Inc. 1/25/2008 17,815.33 "P-23-434" MME Technologies, Inc. 1/25/2008 18,266.69 "P-23-437" MME Technologies, Inc. 1/28/2008 25,116.78 "P-23-457" MME Technologies, Inc. 1/28/2008 23,789.61 "P-23-461" MME Technologies, Inc. 1/28/2008 23,801.18 "P-23-464" MME Technologies, Inc. 1/29/2008 9,774.83 "P-23-483" MME Technologies, Inc. 1/30/2008 16,325.14 "P-23-506" MME Technologies, Inc. 1/31/2008 18,316.09 "P-23-527" MME Technologies, Inc. 1/31/2008 15,697.11 "P-23-540" MME Technologies, Inc. 2/2/2008 20,313.00 "P-23-639" MME Technologies, Inc. 2/4/2008 14,155.05 "P-23-675" MME Technologies, Inc. 2/4/2008 17,888.78 "P-23-680" MME Technologies, Inc. 2/4/2008 25,478.83 "P-23-681" MME Technologies, Inc. 2/5/2008 26,926.38 "P-23-699" MME Technologies, Inc. 2/6/2008 15,110.68 "P-23-728" MME Technologies, Inc. 2/8/2008 14,862.12 "P-23-765" MME Technologies, Inc. 2/8/2008 14,496.43 "P-23-771" MME Technologies, Inc. 2/11/2008 21,794.89 "P-23-793" MME Technologies, Inc. 2/11/2008 24,143.08 "P-23-799" MME Technologies, Inc. 2/12/2008 19,001.71 "P-23-815" MME Technologies, Inc. 2/13/2008 19,294.60 "P-23-844" MME Technologies, Inc. 2/18/2018 12,987.26 "P-23-893" MME Technologies, Inc. 2/18/2018 14,557.01 "P-23-897" MME Technologies, Inc. 2/18/2018 15,995.59 "P-23-903" MME Technologies, Inc. 2/18/2018 20,423.00 "P-23-905" MME Technologies, Inc. 2/18/2018 21,324.68 "P-23-907" MME Technologies, Inc. 2/21/2008 9,819.29 "P-23-946" MME Technologies, Inc. 2/21/2008 20,644.65 "P-23-948" MME Technologies, Inc. 2/28/2008 13,724.88 "P-23-1045" MME Technologies, Inc. 2/28/2008 15,700.62 "P-23-1056" MME Technologies, Inc. 2/28/2008 27,647.49 "P-23-1061" MME Technologies, Inc. 2/28/2008 15,317.64 "P-23-1065" MME Technologies, Inc. 2/28/2008 23,413.00 "P-23-1069" MME Technologies, Inc. 2/28/2008 14,292.20 "P-23-1072" MME Technologies, Inc. 2/28/2008 25,432.55 "P-23-1077" MME Technologies, Inc. 2/29/2008 5,185.57 "P-23-1105" MME Technologies, Inc. 2/29/2008 19,255.21 "P-23-1120" MME Technologies, Inc. 3/1/2008 20,180.00 "P-23-1211" MME Technologies, Inc. 3/3/2008 15,194.27 "P-23-1251" MME Technologies, Inc. 3/3/2008 13,817.31 "P-23-1254" MME Technologies, Inc. 3/4/2008 13,866.06 "P-23-1271" MME Technologies, Inc. 3/5/2008 13,412.36 "P-23-1294" MME Technologies, Inc. 3/6/2008 13,784.68 "P-23-1319" MME Technologies, Inc. 3/7/2008 13,876.85 "P-23-1345" MME Technologies, Inc. 3/10/2008 15,972.84 "P-23-1368" MME Technologies, Inc. 3/10/2008 17,909.58 "P-23-1370" MME Technologies, Inc. 3/10/2008 17,958.20 "P-23-1371" MME Technologies, Inc. 3/11/2008 14,347.45 "P-23-1391" MME Technologies, Inc. 3/12/2008 21,225.23 "P-23-1417" MME Technologies, Inc. 3/13/2008 12,518.87 "P-23-1445" MME Technologies, Inc. 3/13/2008 15,215.85 "P-23-1449" MME Technologies, Inc. 3/17/2008 13,756.08 "P-23-1467" MME Technologies, Inc. 3/17/2008 17,508.01 "P-23-1469" MME Technologies, Inc. 3/19/2008 12,553.45 "P-23-1500" MME Technologies, Inc. 3/19/2008 22,652.11 "P-23-1505" MME Technologies, Inc. 3/19/2008 17,036.76 "P-23-1532" MME Technologies, Inc. 3/24/2008 17,168.19 "P-23-1557" MME Technologies, Inc. 3/24/2008 19,826.17 "P-23-1565" MME Technologies, Inc. 3/26/2008 9,851.14 "P-23-1589" MME Technologies, Inc. 3/26/2008 10,366.98 "P-23-1594" MME Technologies, Inc. 3/27/2008 23,482.03 "P-23-1625" MME Technologies, Inc. 3/28/2008 20,562.49 "P-23-1651" MME Technologies, Inc. 3/31/2008 23,125.70 "P-23-1683" MME Technologies, Inc. 3/31/2008 27,208.48 "P-23-1690" MME Technologies, Inc. 3/31/2008 28,137.46 "P-23-1695" Sub-total 2,356,948.87 2. Cancelled dated July 11, 2002 (Taken over Amkor Tech) Amkor Anam Advanced Packaging, Inc.-P3 1/9/2008 20,700.00 "P-23-136" Amkor Anam Advanced Packaging, Inc.-P3 2/11/2008 13,800.00 "P-23-775" Amkor Anam Advanced Packaging, Inc.-P3 2/13/2008 20,700.00 "P-23-826" Amkor Anam Advanced Packaging, Inc.-P3 2/13/2008 27,600.00 "P-23-851" Amkor Anam Advanced Packaging, Inc.-P3 2/19/2008 20,700.00 "P-23-917" Amkor Anam Advanced Packaging, Inc.-P3 2/28/2008 62,100.00 "P-23-1032" Amkor Anam Advanced Packaging, Inc.-P3 2/29/2008 6,900.00 "P-23-1093" Amkor Anam Advanced Packaging, Inc. 3/11/2008 20,700.00 "P-23-1380" Amkor Anam Advanced Packaging, Inc.-P3 3/25/2008 34,500.00 "P-23-1570" Amkor Anam Advanced Packaging, Inc.-P1 3/31/2008 8,500.00 "P-23-1709" Amkor Anam Advanced Packaging, Inc.-P3 3/31/2008 20,700.00 "P-23-1708" Sub-total 256,900.00 3. Not registered with PEZA Cardinal MRI Center, Inc. 1/22/2008 350,000.00 "P-23-367" Cardinal MRI Center, Inc. 1/22/2008 350,000.00 "P-23-368" CRL Environmental Corporation 2/22/2008 34,400.00 "P-23-990" Shinkozan Corp. (Megastamp) 1/11/2008 5,100.00 "P-23-216" Shinkozan Corp. (Megastamp) 1/16/2008 5,100.00 "P-23-298" Shinkozan Corp. (Megastamp) 1/29/2008 5,100.00 "P-23-487" Shinkozan Corp. (Megastamp) 1/31/2008 3,000.00 "P-23-620" Shinkozan Corp. (Megastamp) 2/29/2008 3,000.00 "P-23-1189" Shinkozan Corp. (Megastamp) 3/31/2008 3,000.00 "P-23-1793" TEAL Pacific LLC 2/29/2008 1,493,320.00 "P-23-1112" TST, Inc. (Tank B) 1/2/2008 24,846.60 "P-23-39" TST, Inc. 1/31/2008 549,724.12 "P-23-599" TST, Inc. 1/31/2008 32,200.00 "P-23-624" TST, Inc. (Tank B) 2/2/2008 24,375.60 "P-23-660" TST, INC 2/29/2008 510,866.05 "P-23-1166" TST, INC 2/29/2008 32,200.00 "P-23-1194" TST, Inc. Tank B 3/1/2008 24,216.00 "P-23-1232" TST, Inc. 3/31/2008 580,370.30 "P-23-1770" TST, Inc. 3/31/2008 30,800.00 "P-23-1798" Yokohama Tire Philippines, Inc. 1/25/2008 423,605.00 "P-23-438" Yokohama Tire Philippines, Inc 3/1/2008 190,000.00 "P-23-1234" Yokohama Tire Philippines, Inc. 3/19/2008 321,615.18 "P-23-1533" Sub-total 4,996,838.85 4. Registered with PEZA in 2010 only Team Pacific Corporation 1/2/2008 8,150.00 "P-23-33" Team Pacific Corporation 1/2/2008 18,000.00 "P-23-34" Team Pacific Corporation 1/8/2008 12,000.00 "P-23-107" Team Pacific Corporation 1/16/2008 12,000.00 "P-23-272" Team Pacific Corporation 1/31/2008 265,419.42 "P-23-550" Team Pacific Corporation 1/31/2008 298,182.24 "P-23-551" Team Pacific Corporation 1/31/2008 172,676.32 "P-23-555" Team Pacific Corporation 1/31/2008 142,710.77 "P-23-556" Team Pacific Corporation 2/2/2008 8,150.00 "P-23-654" Team Pacific Corporation 2/2/2008 18,000.00 "P-23-655" Team Pacific Corporation 2/4/2008 12,000.00 "P-23-667" Team Pacific Corporation 2/4/2008 12,000.00 "P-23-668" Team Pacific Corporation 2/21/2008 12,000.00 "P-23-931" Team Pacific Corporation 2/29/2008 257,289.15 "P-23-1110" Team Pacific Corp. 2/29/2008 301,737.61 "P-23-1111" Team Pacific Corporation 2/29/2008 155,633.00 "P-23-1124" Team Pacific Corp. 2/29/2008 143,382.13 "P-23-1125" Team Pacific Corporation 3/1/2008 8,150.00 "P-23-1226" Team Pacific Corporation 3/1/2008 18,000.00 "P-23-1227" Team Pacific Corporation 3/18/2008 (16,363.50) "P-23-1196" Team Pacific Corporation 3/31/2008 211,730.19 "P-23-1699" Team Pacific Corporation 3/31/2008 269,856.49 "P-23-1701" Team Pacific Corporation 3/31/2008 24,000.00 "P-23-1710" Team Pacific Corp. 3/3/2008 141,896.93 "P-23-1727" Team Pacific Corp. 3/31/2008 133,023.85 "P-23-1728" Sub-total 2,639,624.60 5. Not enlisted in the PEZA confirmation letter/Not certified by PEZA Amkor Anam Technology-P1 1/29/2008 (33,750.00) "P-23-4" Amkor Anam Technology-P1 1/4/2008 3,500.00 "P-23-66" Amkor Anam Technology-P1 1/4/2008 1,500.00 "P-23-67" Amkor Anam Technology-P1 1/9/2008 41,400.00 "P-23-135" Amkor Anam Technology-P1 1/11/2008 11,250.00 "P-23-187" Amkor Anam Technology-P1 1/11/2008 6,000.00 "P-23-206" Amkor Anam Technology-P1 1/11/2008 3,750.00 "P-23-207" Amkor Anam Technology-P1 1/11/2008 3,750.00 "P-23-208" Amkor Anam Technology-P1 1/15/2008 7,500.00 "P-23-248" Amkor Anam Technology-P1 1/15/2008 3,750.00 "P-23-249" Amkor Anam Technology-P1 1/16/2008 7,500.00 "P-23-269" Amkor Anam Technology-P1 1/16/2008 7,500.00 "P-23-270" Amkor Anam Technology-P1 1/16/2008 7,500.00 "P-23-271" Amkor Anam Technology-P1 1/18/2019 7,500.00 "P-23-314" Amkor Anam Technology-P1 1/18/2019 7,500.00 "P-23-320" Amkor Anam Technology-P1 1/18/2019 7,500.00 "P-23-327" Amkor Anam Technology-P1 1/21/2008 7,500.00 "P-23-335" Amkor Anam Technology - P1 1/23/2008 3,750.00 "P-23-390" Amkor Anam Technology - P1 1/24/2008 7,500.00 "P-23-407" Amkor Anam Technology-P1 1/25/2008 1,500.00 "P-23-426" Amkor Anam Technology - P1 1/30/2008 8,500.00 "P-23-494" Amkor Anam Technology - P1 1/30/2008 13,800.00 "P-23-500" Amkor Anam Technology - P1 1/30/2008 48,300.00 "P-23-501" Amkor Anam Technology - P1 1/30/2008 20,700.00 "P-23-502" Amkor Anam Technology-P1 1/31/2008 6,800.00 "P-23-530" Amkor Anam Technology-P1 1/31/2008 8,500.00 "P-23-531" Amkor Anam Technology-P1 1/31/2008 8,500.00 "P-23-532" Amkor Anam Technology-P1 1/31/2008 8,500.00 "P-23-533" Amkor Anam Technology - P1 2/4/2008 8,500.00 "P-23-672" Amkor Anam Technology - P1 2/4/2008 12,750.00 "P-23-673" Amkor Anam Technology - P1 2/6/2008 28,694.78 "P-23-719" Amkor Anam Technology - P1 2/6/2008 8,500.00 "P-23-720" Amkor Anam Technology - P1 2/8/2008 8,500.00 "P-23-758" Amkor Anam Technology - P1 2/8/2008 8,500.00 "P-23-759" Amkor Anam Technology - P1 2/11/2008 8,500.00 "P-23-784" Amkor Anam Technology - P1 2/11/2008 5,950.00 "P-23-785" Amkor Anam Technology - P1 2/12/2008 8,500.00 "P-23-806" Amkor Anam Technology - P1 2/13/2008 69,000.00 "P-23-827" Amkor Anam Technology - P1 2/13/2008 8,500.00 "P-23-842" Amkor Anam Technology P1 2/14/2018 1,700.00 "P-23-864" Amkor Anam Technology P1 2/14/2018 15,300.00 "P-23-865" Amkor Anam Technology - P1 2/15/2018 8,500.00 "P-23-873" Amkor Anam Technology - P1 2/15/2018 8,500.00 "P-23-874" Amkor Anam Technology - P1 2/18/2018 2,550.00 "P-23-882" Amkor Anam Technology - P1 2/18/2018 5,950.00 "P-23-883" Amkor Anam Technology P1 2/19/2008 8,500.00 "P-23-914" Amkor Anam Technology P1 2/19/2008 11,900.00 "P-23-915" Amkor Anam Technology P1 2/21/2008 8,500.00 "P-23-930" Amkor Anam Technology P1 2/21/2008 4,250.00 "P-23-941" Amkor Anam Technology P1 2/22/2008 8,500.00 "P-23-974" Amkor Anam Technology P1 2/22/2008 8,500.00 "P-23-975" Amkor Anam Technology P1 2/27/2008 8,500.00 "P-23-1004" Amkor Anam Technology P1 2/27/2008 6,800.00 "P-23-1005" Amkor Anam Technology P1 2/28/2008 8,500.00 "P-23-1037" Amkor Anam Technology - P1 2/29/2008 5,950.00 "P-23-1087" Amkor Anam Technology - P1 2/29/2008 2,550.00 "P-23-1088" Amkor Anam Technology - P1 2/29/2008 8,500.00 "P-23-1089" Amkor Anam Technology - P1 2/29/2008 6,900.00 "P-23-1090" Amkor Anam Technology - P1 2/29/2008 62,100.00 "P-23-1091" Amkor Anam Technology P1 3/4/2008 9,350.00 "P-23-1261" Amkor Anam Technology P1 3/5/2008 7,650.00 "P-23-1280" Amkor Anam Technology P1 3/5/2008 5,950.00 "P-23-1281" Amkor Anam Technology P1 3/5/2008 69,000.00 "P-23-1282" Amkor Anam Technology P1 3/6/2008 69,000.00 "P-23-1304" Amkor Anam Technology P1 3/6/2008 8,500.00 "P-23-1305" Amkor Anam Technology P1 3/7/2008 8,500.00 "P-23-1334" Amkor Anam Technology P1 3/7/2008 8,500.00 "P-23-1335" Amkor Anam Technology P1 3/7/2008 8,500.00 "P-23-1343" Amkor Anam Technology P1 3/10/2008 8,500.00 "P-23-1362" Amkor Anam Technology P1 3/11/2008 8,500.00 "P-23-1378" Amkor Anam Technology P1 3/11/2008 5,100.00 "P-23-1379" Amkor Anam Technology P1 3/12/2008 8,500.00 "P-23-1407" Amkor Anam Technology P1 3/12/2008 4,250.00 "P-23-1408" Amkor Anam Technology P1 3/12/2008 4,250.00 "P-23-1409" Amkor Anam Technology P1 3/13/2008 8,500.00 "P-23-1435" Amkor Anam Technology P1 3/13/2008 8,500.00 "P-23-1436" Amkor Anam Technology P1 3/13/2008 4,250.00 "P-23-1437" Amkor Anam Technology P1 3/13/2008 4,250.00 "P-23-1438" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1482" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1483" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1484" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1485" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1486" Amkor Anam Technology P1 3/18/2008 8,500.00 "P-23-1487" Amkor Anam Technology P1 3/19/2008 8,500.00 "P-23-1512" Amkor Anam Technology - P1 3/24/2008 27,600.00 "P-23-1538" Amkor Anam Technology - P1 3/24/2008 8,500.00 "P-23-1541" Amkor Anam Technology - P1 3/25/2008 8,500.00 "P-23-1567" Amkor Anam Technology - P1 3/26/2008 8,500.00 "P-23-1578" Amkor Anam Technology - P1 3/26/2008 5,100.00 "P-23-1579" Amkor Anam Technology - P1 3/27/2008 8,500.00 "P-23-1612" Amkor Anam Technology - P1 3/28/2008 8,500.00 "P-23-1643" Amkor Anam Technology - P1 3/28/2008 8,500.00 "P-23-1644" Amkor Anam Technology - P1 3/28/2008 28,740.25 "P-23-1652" Amkor Anam Technology - P1 3/31/2008 8,500.00 "P-23-1663" Amkor Anam Technology - P1 3/31/2008 10,200.00 "P-23-1664" Eightech Tectron Phils., Inc. 1/7/2008 16,000.00 "P-23-76" Eightech Tectron Phils., Inc. 1/7/2008 6,300.00 "P-23-77" Eightech Tectron Phils., Inc. 1/7/2008 3,150.00 "P-23-78" Eightech Tectron Phils., Inc. 1/11/2008 16,000.00 "P-23-186" Eightech Tectron Phils., Inc. 1/18/2019 22,300.00 "P-23-328" Eightech Tectron Phils., Inc. 1/29/2008 6,300.00 "P-23-471" Eightech Tectron Phils., Inc. 1/31/2008 16,000.00 "P-23-521 Eightech Tectron Phils., Inc. 2/8/2008 6,300.00 "P-23-749" Eightech Tectron Phils., Inc. 2/8/2008 16,000.00 "P-23-750" Eightech Tectron Phils., Inc. 2/18/2018 6,300.00 "P-23-880" Eightech Tectron Phils., Inc. 2/19/2008 16,000.00 "P-23-916" Eightech Tectron Phils., Inc. 2/21/2008 16,000.00 "P-23-936" Eightech Tectron Phils., Inc. 2/29/2008 6,300.00 "P-23-1086" Eightech Tectron Phils., Inc. 3/4/2008 16,000.00 "P-23-1257" Eightech Tectron Phils., Inc. 3/10/2008 16,000.00 "P-23-1360" Eightech Tectron Phils., Inc. 3/11/2008 6,300.00 "P-23-1377" Eightech Tectron Phils., Inc. 3/17/2008 6,300.00 "P-23-1453" Eightech Tectron Phils., Inc. 3/25/2008 16,000.00 "P-23-1568" Eightech Tectron Phils., Inc. 3/26/2008 6,300.00 "P-23-1580" HHIC-Phil., Inc. 1/11/2008 (361,380.00) "P-23-1" HHIC-Phil., Inc. 1/31/2008 4,672,038.30 "P-23-579" HHIC-Phil., Inc. 2/29/2008 2,379,310.00 "P-23-1148" Nidec Subic Philippines Corp. 1/2/2008 16,564.40 "P-23-29" Nidec Subic Philippines Corp. 1/22/2008 35,021.43 "P-23-371" Nidec Subic Philippines Corp. 1/22/2008 8,000.00 "P-23-383" Nidec Subic Philippines Corp. 1/31/2008 3,500.00 "P-23-618" Nidec Subic Philippines Corp. 2/2/2008 16,250.40 "P-23-651" Nidec Subic Philippines Corp. 2/4/2008 41,524.73 "P-23-679" Nidec Subic Philippines Corp. 2/28/2008 45,475.01 "P-23-1018" Nidec Subic Philippines Corp. 2/29/2008 3,500.00 "P-23-1187" Nidec Subic Philippines Corp. 3/1/2008 16,144.00 "P-23-1223" Nidec Subic Philippines Corp. 3/17/2008 43,284.41 "P-23-1468" Nidec Subic Philippines Corp. 3/19/2008 201,600.00 "P-23-1514" Nidec Subic Philippines Corporation 3/31/2008 170,000.00 "P-23-1715" Nidec Subic Philippines Corporation 3/31/2008 3,500.00 "P-23-1791" Pilipinas Shell Petroleum Corp.-Shell Gas Eas 1/22/2008 18,931.10 "P-23-375" PSI Technologies Laguna, Inc. (USD) 1/31/2008 621,945.00 "P-23-593" PSI Technologies Laguna, Inc. (USD) 2/29/2008 552,124.80 "P-23-1161" PSI Technologies Laguna, Inc. 3/1/2008 6,000.00 "P-23-1219" PSI Technologies Laguna, Inc. (USD) 3/31/2008 580,290.48 "P-23-1764" Tong Hsing 1/3/2008 12,500.00 "P-23-41" Tong Hsing 1/4/2008 12,500.00 "P-23-58" Tong Hsing 1/10/2008 25,000.00 "P-23-161" Tong Hsing 1/17/2008 25,000.00 "P-23-303" Tong Hsing 1/25/2008 12,500.00 "P-23-424" Tong Hsing 1/25/2008 12,500.00 "P-23-425" Tong Hsing 1/30/2008 12,500.00 "P-23-499" Tong Hsing 2/4/2008 25,000.00 "P-23-663" Tong Hsing 2/8/2008 12,500.00 "P-23-757" Tong Hsing 2/22/2008 12,500.00 "P-23-956" Tong Hsing 2/28/2008 12,500.00 "P-23-1033" Tong Hsing 2/28/2008 12,500.00 "P-23-1034" Tong Hsing 2/29/2008 1,400.00 "P-23-1193" Tong Hsing 3/18/2008 (1,568.00) "P-23-1197" Tong Hsing 3/18/2008 (1,400.00) "P-23-1198" Tong Hsing 3/18/2008 (1,400.00) "P-23-1199" Tong Hsing 3/5/2008 37,500.00 "P-23-1291" Tong Hsing 3/18/2008 12,500.00 "P-23-1490" Tong Hsing 3/18/2008 12,500.00 "P-23-1491" Tong Hsing 3/18/2008 1,600.00 "P-23-1495" Tong Hsing 3/18/2008 1,600.00 "P-23-1496" Tong Hsing 3/18/2008 2,400.00 "P-23-1497" Tong Hsing 3/25/2008 25,000.00 "P-23-1569" Tong Hsing 3/31/2008 1,400.00 "P-23-1797" Walk-In Customers 3/31/2008 10,684.00 "P-23-1704" Sub-total 10,649,225.09 Grand Total P20,899,537.41 In addition, the sales in the total amount of P11,611,487.95 generated by petitioner from its PEZA-registered customers prior to the issuance of their respective PEZA certifications, as presented below, shall also be disallowed for VAT zero-rating, to wit: Name of Customer Invoice Date 72 Amount of Sales Exhibit No. PEZA Certificate for VAT-zero rating was issued only on January 31, 2008 AGC Flat Glass Phils., Inc. 1/2/2008 P59,992.94 "P-23-26" PEZA Certificate for VAT-zero rating was issued only on February 1, 2008 Austria Microsystems Phils., Inc. 1/4/2008 21,000.00 "P-23-52" Austria Microsystems Phils., Inc. 1/8/2008 28,000.00 "P-23-103'' Austria Microsystems Phils., Inc. 1/8/2008 14,000.00 "P-23-104" Austria Microsystems Phils., Inc. 1/8/2008 21,000.00 "P-23-118" Austria Microsystems Phils., Inc. 1/8/2008 21,000.00 "P-23-119" Austria Microsystems Phils., Inc. 1/8/2008 35,000.00 "P-23-120" Austria Microsystems Phils., Inc. 1/8/2008 28,000.00 "P-23-121" Austria Microsystems Phils., Inc. 1/10/2008 42,000.00 "P-23-150" Austria Microsystems Phils., Inc. 1/10/2008 14,000.00 "P-23-151" Austria Microsystems Phils., Inc. 1/10/2008 21,000.00 "P-23-152" Austria Microsystems Phils., Inc. 1/10/2008 14,000.00 "P-23-153" Austria Microsystems Phils., Inc. 1/11/2008 14,000.00 "P-23-178" Austria Microsystems Phils., Inc. 1/11/2008 7,000.00 "P-23-179" Austria Microsystems Phils., Inc. 1/11/2008 7,000.00 "P-23-180" Austria Microsystems Phils., Inc. 1/14/2008 14,000.00 "P-23-227" Austria Microsystems Phils., Inc. 1/14/2008 14,000.00 "P-23-228" Austria Microsystems Phils., Inc. 1/15/2008 28,000.00 "P-23-242" Austria Microsystems Phils., Inc. 1/16/2008 21,000.00 "P-23-274" Austria Microsystems Phils., Inc. 1/16/2008 7,000.00 "P-23-275 Austria Microsystems Phils., Inc. 1/16/2008 14,000.00 "P-23-276" Austria Microsystems Phils., Inc. 1/16/2008 14,000.00 "P-23-277" Austria Microsystems Phils., Inc. 1/18/2019 14,000.00 "P-23-311" Austria Microsystems Phils., Inc. 1/18/2019 14,000.00 "P-23-312" Austria Microsystems Phils., Inc. 1/18/2019 21,000.00 "P-23-317" Austria Microsystems Phils., Inc. 1/18/2019 7,000.00 "P-23-318" Austria Microsystems Phils., Inc. 1/18/2019 14,000.00 "P-23-325" Austria Microsystems Phils., Inc. 1/31/2008 35,000.00 "P-23-522" Austria Microsystems Phils., Inc. 1/31/2008 5,000.00 "P-23-604" PEZA Certificate for VAT-zero rating was issued only on July 21, 2008 Cam Mechatronics (Phils.), Inc. 1/23/2008 12,500.00 "P-23-397" Cam Mechatronics (Phils.), Inc. 1/31/2008 600.00 "P-23-606" CAM MECHATRONICS (PHILS.), INC. 2/29/2008 600.00 "P-23-1174" Cam Mechatronics (Phils.), Inc. 3/31/2008 600.00 "P-23-1777" PEZA Certificate for VAT-zero rating was issued only on January 29, 2008 Castem Philippines Corporation 1/4/2008 11,600.00 "P-23-64" Castem Philippines Corporation 1/11/2008 14,500.00 "P-23-195" Castem Philippines Corporation 1/16/2008 14,500.00 "P-23-284" Castem Philippines Corporation 1/23/2008 14,500.00 "P-23-392" PEZA Certificate for VAT-zero rating was issued only on January 28, 2008 Cirtek Electronics Corporation 1/2/2008 25,000.00 "P-23-11" Cirtek Electronics Corporation 1/8/2008 5,590.00 "P-23-129" Cirtek Electronics Corporation 1/15/2008 5,590.00 "P-23-268" PEZA Certificate for VAT-zero rating was issued only on January 23, 2008 Continental Temic Electronics Phils. 1/2/2008 46,587.37 "P-23-12" Continental Temic Electronics Phils. 1/11/2008 1,500.00 "P-23-212" Continental Temic Electronics Phils. 1/16/2008 42,500.00 "P-23-293" Continental Temic Electronics Phils. 1/17/2008 7,500.00 "P-23-304" PEZA Certificate for VAT-zero rating was issued only on September 3, 2008 CPL Packaging, Inc. 1/29/2008 1,900.00 "P-23-489" CPL Packaging, Inc. 1/31/2008 800.00 "P-23-602" CPL Packaging, Inc. 2/29/2008 800.00 "P-23-1169" CPL Packaging, Inc. 3/31/2008 800.00 "P-23-1773" PEZA Certificate for VAT-zero rating was issued only on February 8, 2008 Fastech Electronique, Inc. 1/8/2008 2,850.00 "P-23-128" PEZA Certificate for VAT-zero rating was issued only on January 8, 2008 Hoya Glass Disk Philippines, Inc. 1/2/2008 24,846.60 "P-23-18" PEZA Certificate for VAT-zero rating was issued only on February 13, 2008 ISPL (Phil.), Inc. (Formerly ATEC) 1/2/2008 37,000.00 "P-23-9" ISPL (Phil.), Inc. (Formerly ATEC) 1/7/2008 45,600.00 "P-23-75" ISPL (Phils.), Inc. 1/11/2008 45,600.00 "P-23-181" ISPL (Phils.), Inc. 1/15/2008 45,600.00 "P-23-250" ISPL (Phils.), Inc. 1/24/2008 45,600.00 "P-23-408" ISPL (Phils.), Inc. 1/24/2008 45,600.00 "P-23-409" ISPL (Phils.), Inc. 1/31/2008 91,200.00 "P-23-515" ISPL (Phils.), Inc. (Formerly ATEC) 1/31/2008 650,395.23 "P-23-575" ISPL (Phil.), Inc. (Formerly ATEC) 2/2/2008 37,000.00 "P-23-631" ISPL (Phils.), Inc. 2/6/2008 45,600.00 "P-23-726" ISPL (Phils.), Inc. 2/11/2008 91,200.00 "P-23-786" PEZA Certificate for VAT-zero rating was issued only on February 1, 2008 Ju-Young Electronics Phils., Inc. 1/31/2008 200.00 "P-23-611" PEZA Certificate for VAT-zero rating was issued only on January 17, 2008 Katolec Phils. Corp. 1/2/2008 37,269.90 "P-23-15" PEZA Certificate for VAT-zero rating was issued only on January 15, 2008 Komyo Phil. Logistics Service Corp. 1/3/2008 6,144.80 "P-23-47" Komyo Phil. Logistics Service Corp. 1/7/2008 9,217.20 "P-23-79" Komyo Phil. Logistics Service Corp. 1/10/2008 9,217.20 "P-23-160" PEZA Certificate for VAT-zero rating was issued only on February 5, 2008 Littelfuse Philippines, Inc. 1/7/2008 23,700.00 "P-23-80" Littelfuse Philippines, Inc. 1/7/2008 15,800.00 "P-23-81" Littelfuse Philippines, Inc. 1/10/2008 39,500.00 "P-23-157" Littelfuse Philippines, Inc. 1/14/2008 15,800.00 "P-23-219" Littelfuse Philippines, Inc. 1/21/2008 15,800.00 "P-23-338" Littelfuse Philippines, Inc. 1/24/2008 15,800.00 "P-23-403" Littelfuse Philippines, Inc. 1/24/2008 15,800.00 "P-23-404" Littelfuse Philippines, Inc. 1/24/2008 7,900.00 "P-23-412" Littelfuse Philippines, Inc. 1/31/2008 47,400.00 "P-23-514" Littelfuse Philippines, Inc. 1/31/2008 3,300.00 "P-23-613" PEZA Certificate for VAT-zero rating was issued only on January 10, 2008 Luzon Electronics Technology, Inc. 1/2/2008 31,058.25 "P-23-16" PEZA Certificate for VAT-zero rating was issued only on January 23, 2008 Maeno Giken, Inc. 1/4/2008 5,700.00 "P-23-72" Maeno Giken, Inc. 1/10/2008 9,120.00 "P-23-170" Maeno Giken, Inc. 1/11/2008 5,700.00 "P-23-213" Maeno Giken, Inc. 1/15/2008 5,700.00 "P-23-265" Maeno Giken, Inc. 1/15/2008 8,420.00 "P-23-267" Maeno Giken, Inc. 1/18/2019 5,700.00 "P-23-333" Maeno Giken, Inc. 1/22/2008 5,700.00 "P-23-373" PEZA Certificate for VAT-zero rating was issued only on January 14, 2008 Masuda Philippines, Inc. 1/4/2008 29,730.80 "P-23-73" Masuda Philippines, Inc. 1/4/2008 24,000.00 "P-23-74" Masuda Philippines, Inc. 1/8/2008 20,811.56 "P-23-125" Masuda Philippines, Inc. 1/10/2008 14,400.00 "P-23-166" Masuda Philippines, Inc. 1/10/2008 14,865.40 "P-23-167" Masuda Philippines, Inc. 1/11/2008 19,200.00 "P-23-214" Masuda Philippines, Inc. 1/11/2008 17,838.48 "P-23-215" Masuda Philippines, Inc. 1/11/2008 23,784.64 "P-23-217" PEZA Certificate for VAT-zero rating was issued only on January 21, 2008 MSM Manila, Inc. 1/4/2008 7,500.00 "P-23-53" MSM Manila, Inc. 1/18/2019 7,500.00 "P-23-309" MSM Manila, Inc. 1/18/2019 7,500.00 "P-23-310" PEZA Certificate for VAT-zero rating was issued only on January 28, 2008 NXP Semiconductors Philippines, Inc. 1/4/2008 18,000.00 "P-23-65" NXP Semiconductors Philippines, Inc. 1/7/2008 24,000.00 "P-23-85" NXP Semiconductors Philippines, Inc. 1/7/2008 18,000.00 "P-23-86" NXP Semiconductors Philippines, Inc. 1/7/2008 12,000.00 "P-23-87" NXP Semiconductors Philippines, Inc. 1/8/2008 24,000.00 "P-23-112" NXP Semiconductors Philippines, Inc. 1/8/2008 12,000.00 "P-23-113" NXP Semiconductors Philippines, Inc. 1/9/2008 2,600.00 "P-23-131" NXP Semiconductors Philippines, Inc. 1/9/2008 24,000.00 "P-23-132" NXP Semiconductors Philippines, Inc. 1/9/2008 12,000.00 "P-23-133" NXP Semiconductors Philippines, Inc. 1/9/2008 6,000.00 "P-23-134" NXP Semiconductors Philippines, Inc. 1/11/2008 1,300.00 "P-23-183" NXP Semiconductors Philippines, Inc. 1/11/2008 24,000.00 "P-23-184" NXP Semiconductors Philippines, Inc. 1/11/2008 24,000.00 "P-23-191" NXP Semiconductors Philippines, Inc. 1/11/2008 18,000.00 "P-23-192" NXP Semiconductors Philippines, Inc. 1/11/2008 12,000.00 "P-23-193" NXP Semiconductors Philippines, Inc. 1/11/2008 6,000.00 "P-23-194" NXP Semiconductors Philippines, Inc. 1/11/2008 24,000.00 "P-23-199" NXP Semiconductors Philippines, Inc. 1/11/2008 18,000.00 "P-23-200" NXP Semiconductors Philippines, Inc. 1/11/2008 12,000.00 "P-23-201" NXP Semiconductors Philippines, Inc. 1/11/2008 6,000.00 "P-23-202" NXP Semiconductors Philippines, Inc. 1/11/2008 6,000.00 "P-23-209" NXP Semiconductors Philippines, Inc. 1/14/2008 18,000.00 "P-23-222" NXP Semiconductors Philippines, Inc. 1/14/2008 12,000.00 "P-23-223" NXP Semiconductors Philippines, Inc. 1/14/2008 6,000.00 "P-23-224" NXP Semiconductors Philippines, Inc. 1/14/2008 6,000.00 "P-23-225" NXP Semiconductors Philippines, Inc. 1/21/2008 4,000.00 "P-23-343" NXP Semiconductors Philippines, Inc. 1/24/2008 3,900.00 "P-23-401" NXP Semiconductors Philippines, Inc. 1/25/2008 12,000.00 "P-23-420" NXP Semiconductors Philippines, Inc. 1/25/2008 12,000.00 "P-23-421" NXP Semiconductors Philippines, Inc. 1/25/2008 24,000.00 "P-23-422" PEZA Certificate for VAT-zero rating was issued only on January 8, 2008 ON Semiconductor Phils., Inc. 1/2/2008 798,000.00 "P-23-30" ON Semiconductor Phils., Inc. 1/2/2008 65,000.00 "P-23-31" ON Semiconductor Phils., Inc. 1/3/2008 90,403.01 "P-23-48" ON Semiconductor Phils., Inc. 1/3/2008 37,935.61 "P-23-50" ON Semiconductor Phils., Inc. 1/4/2008 67,348.77 "P-23-69" ON Semiconductor Phils., Inc. 1/7/2008 37,646.86 "P-23-89" ON Semiconductor Phils., Inc. 1/7/2008 36,755.83 "P-23-91" ON Semiconductor Phils., Inc. 1/7/2008 69,392.83 "P-23-92" PEZA Certificate for VAT-zero rating was issued only on February 29, 2008 Orient Semiconductor Electronics 1/2/2008 24,000.00 "P-23-19" Orient Semiconductor Electronics 1/16/2008 11,000.00 "P-23-273" Orient Semiconductor Electronics 1/24/2008 3,500.00 "P-23-405" Orient Semiconductor Electronics 1/31/2008 379,432.62 "P-23-589" Orient Semiconductor Electronics 1/31/2008 2,670.00 "P-23-615" Orient Semiconductor Electronics 2/2/2008 24,000.00 "P-23-641" Orient Semiconductor Electronics 2/5/2008 11,000.00 "P-23-707" Orient Semiconductor Electronics 2/6/2008 3,500.00 "P-23-721" Orient Semiconductor Electronics 2/14/2018 11,000.00 "P-23-855" Orient Semiconductor Electronics 2/21/2008 16,500.00 "P-23-939" Orient Semiconductor Electronics 2/27/2008 11,000.00 "P-23-993" PEZA Certificate for VAT-zero rating was issued only on May 2, 2008 Philippine Toei Chemical Corporation 1/2/2008 18,000.00 "P-23-20" Philippine Toei Chemical Corporation 1/31/2008 206,762.30 "P-23-590" Philippine Toei Chemical Corporation 2/2/2008 18,000.00 "P-23-642" Philippine Toei Chemical Corporation 2/29/2008 146,639.20 "P-23-1158" Philippine Toei Chemical Corporation 3/1/2008 18,000.00 "P-23-1214" Philippine Toei Chemical Corporation 3/31/2008 183,250.00 "P-23-1761" PEZA Certificate for VAT-zero rating was issued only on February 4, 2008 Pricon Microelectronics, Inc. 1/2/2008 24,846.60 "P-23-21" Pricon Microelectronics, Inc. 1/3/2008 26,695.84 "P-23-51" Pricon Microelectronics, Inc. 1/4/2008 27,128.63 "P-23-70" Pricon Microelectronics, Inc. 1/7/2008 29,159.98 "P-23-97" Pricon Microelectronics, Inc. 1/7/2008 30,758.15 "P-23-98" Pricon Microelectronics, Inc. 1/8/2008 36,029.92 "P-23-126" Pricon Microelectronics, Inc. 1/9/2008 33,440.44 "P-23-145" Pricon Microelectronics, Inc. 1/10/2008 41,172.57 "P-23-175" Pricon Microelectronics, Inc. 1/14/2008 39,886.58 "P-23-233" Pricon Microelectronics, Inc. 1/14/2008 35,983.95 "P-23-235" Pricon Microelectronics, Inc. 1/15/2008 27,276.40 "P-23-258" Pricon Microelectronics, Inc. 1/15/2008 29,235.75 "P-23-263" Pricon Microelectronics, Inc. 1/16/2008 30,137.48 "P-23-294" Pricon Microelectronics, Inc. 1/17/2008 36,018.19 "P-23-308" Pricon Microelectronics, Inc. 1/21/2008 58,670.73 "P-23-351" Pricon Microelectronics, Inc. 1/21/2008 39,504.58 "P-23-355" Pricon Microelectronics, Inc. 1/22/2008 27,611.85 "P-23-377" Pricon Microelectronics, Inc. 1/25/2008 28,842.03 "P-23-427" Pricon Microelectronics, Inc. 1/25/2008 54,977.64 "P-23-428" Pricon Microelectronics, Inc. 1/28/2008 28,567.78 "P-23-455" Pricon Microelectronics, Inc. 1/28/2008 29,652.28 "P-23-460" Pricon Microelectronics, Inc. 1/29/2008 36,700.64 "P-23-482" Pricon Microelectronics, Inc. 1/30/2008 34,698.33 "P-23-507" Pricon Microelectronics, Inc. 1/31/2008 29,809.88 "P-23-526" Pricon Microelectronics, Inc. 1/31/2008 41,670.26 "P-23-537" Pricon Microelectronics, Inc. 2/2/2008 24,375.60 "P-23-643" PEZA Certificate for VAT-zero rating was issued only on March 24, 2008 PSI Technologies, Inc. 1/2/2008 9,000.00 "P-23-22" PSI Technologies, Inc. 1/2/2008 8,100.00 "P-23-23" PSI Technologies, Inc. 1/2/2008 3,000.00 "P-23-24" PSI Technologies, Inc. 1/2/2008 6,000.00 "P-23-25" PSI Technologies, Inc. 1/31/2008 1,657,609.03 "P-23-554" PSI Technologies, Inc. 1/31/2008 498,185.26 "P-23-591" PSI Technologies, Inc. 1/31/2008 21,951.00 "P-23-592" PSI Technologies, Inc. 2/2/2008 9,000.00 "P-23-644" PSI Technologies, Inc. 2/2/2008 8,100.00 "P-23-645" PSI Technologies, Inc. 2/2/2008 3,000.00 "P-23-646" PSI Technologies, Inc. 2/2/2008 6,000.00 "P-23-647" PSI Technologies, (USD) 2/29/2008 521,967.81 "P-23-1159" PSI Technologies, Inc. 2/29/2008 1,656,415.97 "P-23-1123" PSI Technologies, Inc. 2/29/2008 21,794.40 "P-23-1160" PSI Technologies, Inc. 3/1/2008 9,000.00 "P-23-1216" PSI Technologies, Inc. 3/1/2008 8,100.00 "P-23-1217" PSI Technologies, Inc. 3/1/2008 3,000.00 "P-23-1218" PEZA Certificate for VAT-zero rating was issued only on February 13, 2008 Sanritsu Great International 1/4/2008 15,000.00 "P-23-56" Sanritsu Great International 1/4/2008 6,000.00 "P-23-57" Sanritsu Great International 1/17/2008 6,000.00 "P-23-300" Sanritsu Great International 1/22/2008 15,000.00 "P-23-374" Sanritsu Great International 2/5/2008 15,000.00 "P-23-690" Sanritsu Great International 2/5/2008 2,850.00 "P-23-691" PEZA Certificate for VAT-zero rating was issued only on January 11, 2008 Shi Mfg. & Services (Phils.), Inc. 1/2/2008 18,700.00 "P-23-32" Shi Mfg. & Services (Phils.), Inc. 1/10/2008 6,500.00 "P-23-173" PEZA Certificate for VAT-zero rating was issued only on January 28, 2008 Shindengen Philippines Corp. 1/8/2008 10,340.00 "P-23-130" Shindengen Philippines Corp. 1/16/2008 10,340.00 "P-23-299" PEZA Certificate for VAT-zero rating was issued only on January 23, 2008 Showa Aluminum Mfg., Phils. Corp. 1/8/2008 26,000.00 "P-23-123" Showa Aluminum Mfg., Phils. Corp. 1/10/2008 20,800.00 "P-23-172" Showa Aluminum Mfg., Phils. Corp. 1/11/2008 39,000.00 "P-23-211" Showa Aluminum Mfg., Phils. Corp. 1/16/2008 65,000.00 "P-23-292" Showa Aluminum Mfg., Phils. Corp. 1/18/2008 20,800.00 "P-23-334" Showa Aluminum Mfg., Phils. Corp. 1/22/2008 16,000.00 "P-23-370" PEZA Certificate for VAT-zero rating was issued only on January 23, 2008 Temic Automotive Philippines 1/2/2008 14,000.00 "P-23-35" PEZA Certificate for VAT-zero rating was issued only on March 27, 2008 Tokyo Steel Philippines Corp. 1/2/2008 38,250.00 "P-23-37" Tokyo Steel Philippines Corp. 1/2/2008 6,300.00 "P-23-38" Tokyo Steel Philippines Corp. 2/2/2008 38,250.00 "P-23-658" Tokyo Steel Philippines Corp. 2/2/2008 6,300.00 "P-23-659" Tokyo Steel Philippines Corp. 3/1/2008 38,250.00 "P-23-1230" Tokyo Steel Philippines Corp. 3/1/2008 6,300.00 "P-23-1231" PEZA Certificate for VAT-zero rating was issued only on January 8, 2008 Vishay Philippines, Inc. 1/2/2008 13,500.00 "P-23-40" PEZA Certificate for VAT-zero rating was issued only on February 1, 2008 YKY Parts Corporation 1/8/2008 31,000.00 "P-23-116" YKY Parts Corporation 1/8/2008 31,000.00 "P-23-117" YKY Parts Corporation 1/11/2008 31,000.00 "P-23-204" YKY Parts Corporation 1/11/2008 31,000.00 "P-23-205" YKY Parts Corporation 1/16/2008 31,000.00 "P-23-278" YKY Parts Corporation 1/18/2019 31,000.00 "P-23-313" YKY Parts Corporation 1/21/2008 31,000.00 "P-23-336" YKY Parts Corporation 1/21/2008 31,000.00 "P-23-337" YKY Parts Corporation 1/25/2008 31,000.00 "P-23-413" YKY Parts Corporation 1/25/2008 31,000.00 "P-23-414" PEZA Certificate for VAT-zero rating was issued only on January 21, 2008 Yutaka Manufacturing Philippines, Inc. 1/4/2008 17,600.00 "P-23-62" Yutaka Manufacturing Philippines, Inc. 1/4/2008 17,600.00 "P-23-63" Yutaka Manufacturing Philippines, Inc. 1/4/2008 6,710.00 "P-23-68" Yutaka Manufacturing Philippines, Inc. 1/7/2008 26,400.00 "P-23-82" Yutaka Manufacturing Philippines, Inc. 1/7/2008 3,355.00 "P-23-83" Yutaka Manufacturing Philippines, Inc. 1/8/2008 26,400.00 "P-23-114" Yutaka Manufacturing Philippines, Inc. 1/9/2008 17,600.00 "P-23-137" Yutaka Manufacturing Philippines, Inc. 1/9/2008 8,800.00 "P-23-138" Yutaka Manufacturing Philippines, Inc. 1/10/2008 17,600.00 "P-23-164" Yutaka Manufacturing Philippines, Inc. 1/11/2008 17,600.00 "P-23-188" Yutaka Manufacturing Philippines, Inc. 1/11/2008 8,800.00 "P-23-189" Yutaka Manufacturing Philippines, Inc. 1/11/2008 17,600.00 "P-23-198" Yutaka Manufacturing Philippines, Inc. 1/14/2008 26,400.00 "P-23-220" Yutaka Manufacturing Philippines, Inc. 1/15/2008 17,600.00 "P-23-251" Yutaka Manufacturing Philippines, Inc. 1/16/2008 8,800.00 "P-23-279" Yutaka Manufacturing Philippines, Inc. 1/16/2008 17,600.00 "P-23-280" Yutaka Manufacturing Philippines, Inc. 1/16/2008 8,800.00 "P-23-281" Yutaka Manufacturing Philippines, Inc. 1/18/2019 26,400.00 "P-23-315" Yutaka Manufacturing Philippines, Inc. 1/18/2019 17,600.00 "P-23-324" TOTAL P11,611,487.95 In sum, out of the total declared zero-rated sales of P199,197,257.57 in the 1st quarter of 2008, the Court finds that only the amount of P123,908,965.20 are valid zero-rated sales, computed as follows: Zero-rated Sales declared per Quarterly VAT Return P199,197,257.57 Less: Disallowances 1. Zero-rated Sales without supporting documents (Difference between the amount declared and the total amount per schedule) 235.556.93 2. Sales not duly supported by VAT "zero-rated" sales invoices and official receipts 42,541,710.08 3. Sales related to entities not certified by PEZA as entitled for VAT zero-rating 20,899,537.41 4. Sales generated prior to the issuance of the PEZA certification for VAT zero-rating 11,611,487.95 Total Disallowances 75,288,292.37 Valid zero-rated sales P123,908,965.20 Such being the case, petitioner complied with the fourth requisite to successfully obtain a credit/refund of input VAT, but only insofar as the amount of P123,908,965.20, representing its zero-rated sales for the 1st quarter of 2008, is concerned. For the fifth requisite, the same is not applicable to petitioner, since the basis for its VAT zero-rating is Sections 106 (A) (2) (a) (5) and 108 (B) (3) of the NIRC of 1997, as amended, as earlier shown, and not Sections 106 (A) (2) (a) (1) and (2); 106 (B); and 108 (B) (1) and (2) thereof. Thus, petitioner need not comply with the said requisite. The input taxes being claimed are not transitional input taxes The present claim in the total amount of P21,460,431.48 pertains to the input VAT incurred from domestic purchases and importation of goods and services during the 1st quarter of 2008. The said amount is broken down as follows: Particulars Input VAT Purchases of Capital Goods not exceeding P1Million P75,779.54 Purchases of Capital Goods exceeding P1Million 404,880.13 Domestic Purchase of Goods other than Capital Goods 6,970,808.31 Importation of Goods other than Capital Goods 2,843,716.00 Domestic Purchase of Services 11,165,247.50 Total P21,460,431.48 The above input taxes apparently are not transitional input taxes, as referred to under Section 111 (A) of the NIRC of 1997, as amended, to wit: "SEC. 111. Transitional/Presumptive input Tax Credits . (A) Transitional Input Tax Credits. A person who becomes liable to value-added tax or any person who elects to be a VAT-registered person shall, subject to the filing of an inventory according to rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner, be allowed input tax on his beginning inventory of goods, materials and supplies equivalent for two percent (2%) of the value of such inventory or the actual value-added tax paid on such goods, materials and supplies, whichever is higher, which shall be creditable against the output tax." Transitional input tax credit operates to benefit newly VAT-registered persons, whether or not they previously paid taxes in the acquisitions of their beginning inventory of goods, materials and supplies. During the period of transition from non-VAT to VAT status, the transitional input tax credit serves to alleviate the impact of the VAT on the taxpayer. 73 Since the input taxes being claimed are not transitional input VAT, petitioner thus complied with the sixth requisite. Petitioner's input VAT was due or paid, but only in the amount of P440,570.35 In support of the input VAT claim of P21,460,431.48, petitioner submitted various invoices, official receipts, import entry and internal revenue declarations and Bureau of Customs Confirmation 74 which were examined by the ICPA. Apropos , in the same way that there must be compliance with the invoicing requirements for its zero-rated sales, petitioner must likewise show compliance therewith as regards its purchases. Petitioner's compliance with all the VAT invoicing requirements is required to be able to file a claim for input taxes attributable to zero-rated sales. 75 The invoicing and substantiation requirements should be followed because it is the only way to determine the veracity of the taxpayer's claims. 76 More importantly, it must be emphasized that compliance with all the VAT invoicing requirements provided by tax laws and regulations is mandatory. 77 Out of the P21,460,431.48, the ICPA noted that the total input VAT of P20,711,373.79 78 is supported by documents, but with the following noted exceptions, to wit: Noted Exceptions Input VAT Exhibit A Certain local purchases of goods and services were not supported by VAT invoices and ORs P1,499,193.55 "P-26A" B Certain invoices and official receipts without original copies 82,559.75 "P-26B" C Certain invoices and official receipts did not show the TIN of the Company 4,032,389.28 "P-26C" D Certain invoices and official receipts did not show the correct address of the Company 26,729.02 "P-26D" E Certain invoices and official receipts were dated outside the year and period of claim or did not indicate any date at all 2,847,809.98 "P-26E" F Certain invoices and official receipts did not separately indicate the VAT 138,697.17 "P-26F" G Certain invoices and official receipts with alterations on the required information ( i.e., date, TIN and address) pursuant to Section 4.113 (B) of RR No. 16-2005 were without countersignature by an authorized representative of the supplier 171,605.34 "P-26G" H No supporting documents 10,174,518.97 "P-26H"; "P-27H" I Amount claimed is higher than the amount per documents 1,735,330.57 "P-26I"; "P-27I" J Over-claimed input VAT from purchase of capital goods exceeding 1M for the month of March 2008 2,540.17 "P-26J" Total P20,711,373.80 The Court finds the ICPA findings on the input VAT with noted exceptions proper. Thus, the total amount of P20,711,373.80 should already be disallowed for not being properly substantiated by VAT invoices and official receipts as prescribed under Sections 110 (A) and 113 (A) and (B), 237 and 238 of the NIRC, as amended, in relation to Sections 4.110-2, 4.110-8 and 4.113-1 of RR No. 16-05, as amended. In addition, upon verification of the remaining input VAT of P749,057.69 (P21,460,431.48 less P20,711,373.79), the Court notes a discrepancy of P17,337.48. This discrepancy should be disallowed as well from petitioner's claim on the ground that the same is likewise without proper supporting document, to wit: Particulars Input VAT Exhibit Input VAT with no noted exception per ICPA Report P749,057.69 Compared against amount shown per Exhibit: Input VAT on Purchases of Goods and Services 618,585.21 "P-26K" Importation of Goods other than Capital Goods 113,135.00 "P-27K" Total 731,720.21 Difference P17,337.48 Upon further examination of the documents supporting the input VAT with no noted exceptions under Exhibits "P-26K" and "P-27K", the Court observes that included therein was a purchase of capital goods in the amount of P2,426,413.92 where the corresponding input VAT of P291,169.67 was claimed by petitioner. However, the supporting sales invoice revealed that the amount of purchase was only P185.00, with P19.82 input VAT. Thus, the difference of P291,149.85, as computed below, should likewise be disallowed, viz. : Details Amount of Purchase (Net of VAT) Input VAT Superior Gas & Equipment Co., Inc. Sales Invoice No. 605707 Date: January 9, 2008 Per Schedule (Exhibit "P-26K") P2,426,413.92 P291,169.67 Per Sales Invoice (Exhibit "P-26-7") 185.00 19.82 Difference P2,426,228.92 P291,149.85 Correspondingly, out of the total input VAT claim of P21,460,431.48 for the 1st quarter of 2008, only the amount of P440,570.35, as computed below, represents petitioner's valid input VAT for the same period: Total Input VAT claim for refund/TCC P21,460,431.48 Less: Disallowances Per ICPA Report Per this Court's further verification 20,711,373.80 a. Difference between the total amount of input VAT with no noted exception per ICPA report against the total sum as shown in Exhibits "P-26K" and "P-27K" 17,337.48 b. Difference between the amount per Schedule (Exhibit "P-26") and the amount actually reflected in the supporting Sales Invoice (Exhibit "P-26-7") 291,149.85 Total Disallowances 21,019,861.13 Valid Input VAT P440,570.35 Such being the case, for the purpose of the seventh requisite to successfully obtain a credit/refund of input VAT ( i.e., that the input VAT was due or paid), petitioner has complied therewith, but only in the amount of P440,570.35. A portion of petitioner's valid input taxes due or paid may be attributed to its zero-rated or effectively zero-rated sales To reiterate, the eighth requisite is to the effect that the input taxes claimed are attributable to zero-rated or effectively zero-rated sales. However, where there are both zero-rated or effectively zero-rated sales and taxable or exempt sales, and the input taxes cannot be directly and entirely attributed to any of these sales, the input taxes shall be proportionately allocated on the basis of sales volume. Considering that petitioner is engaged in taxable sales subject to zero percent (0%), and twelve percent (12%) rates, as well as exempt sales, and its input VAT cannot be directly or entirely attributed to any of the transactions, this Court shall allocate the valid input VAT proportionately on the basis of the volume of its sales. Thus, the following computations: Zero-Rated Sales per Quarterly VAT Return P199,197,257.57 Divided by the Reported Total Sales per Quarterly VAT Return P257,254,403.16 Multiplied by Total Valid Input VAT P440,570.35 Valid input VAT allocated to total zero-rated sales P341,142.48 Taxable Sales subject to 12% VAT per Quarterly VAT Return P57,054,748.75 Divided by the Reported Total Sales per Quarterly VAT Return P257,254,403.16 Multiplied by Total Valid Input VAT P440,570.35 Valid input VAT allocated to total sales subject to 12% VAT P97,711.18 Exempt Sales per Quarterly VAT Return P1,002,396.84 Divided by the Reported Total Sales per Quarterly VAT Return P257,254,403.16 Multiplied by Total Valid Input VAT P440,570.35 Valid input VAT allocated to total exempt sales P1,716.69 Correspondingly, for purposes of, and with regard to petitioner's compliance with, the eighth requisite, only the amount of P341,142.48 represents valid input VAT attributable to petitioner's total reported zero-rated sales. Petitioner had no unutilized input taxes available for refund Having settled that petitioner had valid input VAT attributable to its zero-rated sales, this Court shall now determine whether the same was not applied against its output VAT liability during the subject quarter, and in the succeeding quarters, relative to the ninth requisite for the successful prosecution of an input VAT refund claim. For the 1st quarter of 2008, petitioner has output VAT liability in the amount of P6,846,569.85. 79 Since petitioner's valid input VAT allocated to sales subject to the 12% VAT in the amount of P97,711.18 is not enough to cover the said output VAT liability, the output VAT still due against petitioner is computed as follows: Output VAT P6,846,569.85 Input VAT allocated to VATable sales 97,711.18 Output VAT still due P6,748,858.67 The valid input VAT attributable to total reported zero-rated sales shall then be utilized against the said remaining output VAT liability of petitioner. Apparently, the input VAT attributable to zero-rated sales of P341,142.48 is lower than the net output VAT payable of P6,748,858.67. Consequently, petitioner still has a net output VAT due of P6,407,716.19, as shown below: Output VAT still due P6,748,858.67 Input VAT allocated to zero-rated sales 341,142.48 Net Output VAT still due P6,407,716.19 Although petitioner's Quarterly VAT Return for the 1st quarter of 2008 reflected the amount of P131,225,119.85 80 as "Input Tax Carried Over from Previous Period," petitioner failed to substantiate the same, and thus, cannot be used to pay the net output VAT still due of P6,407,716.19. In this connection, it must be emphasized that in cases filed before this Court, which are litigated de novo , party-litigants must prove every minute aspect of their case. 81 Verily, in claiming excess or unutilized input VAT from zero-rated transactions, it is the excess over the output VAT which should be refunded to the taxpayer or credited against other internal revenue taxes. Hence, it is important for the taxpayer to prove that it has enough prior year's excess input VAT credits to cover its output VAT liability for a particular period. Failing which, the " Input Tax Carried Over from Previous Period" cannot be used to pay, or applied against, the output VAT. Consequently, petitioner cannot be said to have fulfilled the ninth requisite. More importantly, considering that there is no excess input VAT which may be the subject of a claim for refund or tax credit certificate under Section 112 (A) of the NIRC of 1997, as amended, the present claim must necessarily fail. Well-settled is the rule that tax refunds are in the nature of tax exemptions. As such, they are regarded as derogation of sovereign authority and to be construed strictissimi juris against the person or entity claiming the refund. 82 The claimant has the burden of proof to establish the factual basis of his or her claim for tax credit or refund. 83 Petitioner, unfortunately, failed to discharge this burden. WHEREFORE , in light of the foregoing considerations, the Petition for Review filed by Air Liquide Philippines, Inc. on March 30, 2010, praying for the refund or issuance of a tax credit certificate in the total amount of Twenty-One Million Four Hundred Sixty Thousand Four Hundred Thirty-One Pesos and Forty-Eight Centavos (P21,460,431.48) representing its alleged unutilized input Value-Added Tax (VAT) for the 1st quarter of 2008 is hereby DENIED for lack of merit. SO ORDERED. (SGD.) ROMAN G. DEL ROSARIO Presiding Justice Catherine T. Manahan and Marian Ivy F. Reyes-Fajardo, JJ. , concur. Footnotes 1. Par. I.3, Stipulation of Facts, Joint Stipulation of Facts & Issues (JSFI), Docket Vol. II, p. 897. 2. Par. 1.1, Stipulation of Facts, JSFI, Docket Vol. II, p. 897. 3. Par. 1.2, Stipulation of Facts, JSFI, Docket Vol. II, p. 897. 4. Par. 10, Petition for Review (Docket Vol. I, pp. 4 to 5) vis--vis Par. 2, Answer (Docket Vol. II, p. 807). 5. Docket Vol. I, pp. 1 to 13. 6. Docket Vol. I, pp. 98 to 101. 7. Docket Vol. I, pp. 117 to 124. 8. Docket Vol. I, pp. 129 to 140. 9. Docket Vol. I, pp. 146 to 159. 10. Docket Vol. I, pp. 164 to 167. 11. Docket Vol. I, pp. 169 to 176. 12. Docket Vol. I, pp. 179 to 189. 13. Docket Vol. I, pp. 190 to 212. 14. Docket Vol. I, pp. 424 to 447. 15. Docket Vol. I, pp. 455 to 470. 16. Docket Vol. I, pp. 478 to 482. 17. Docket Vol. I, pp. 490 to 536. 18. Docket Vol. I, pp. 778 to 784. 19. Docket Vol. I, pp. 778 to 784. 20. Docket Vol. I, p. 787. 21. Docket Vol. I, pp. 797 to 800. 22. Docket Vol. II, p. 802. 23. Docket Vol. I, pp. 803 to 806. 24. Docket Vol. I, pp. 807 to 810. 25. Docket Vol. I, pp. 813 to 815. 26 Docket Vol. I, pp. 820 to 822. 27. Notice of Pre-Trial Conference dated April 4, 2019, Docket Vol. II, pp. 825 to 826; Minutes of the hearing held on, and Order dated, May 9, 2019, Docket Vol. II, pp. 857 to 859, and 861 to 862, respectively. 28. Docket Vol. II, pp. 832 to 847. 29. Docket Vol. II, pp. 854 to 856. 30. Docket Vol. II, pp. 897 to 905. 31. Docket Vol. III, pp. 1442 to 1456. 32. Exhibit "P-77", Docket Vol. II, pp. 1061 to 1069; Minutes of the hearing held on, and Order dated, September 10, 2019, Docket Vol. III, pp. 1457 to 1461. 33. Exhibit "P-78", Docket Vol. II, pp. 923 to 936; Minutes of the hearing held on, and Order dated, September 10, 2019, Docket Vol. III, pp. 1457 to 1461. 34. Exhibit "P-81", Docket Vol. III, pp. 1609 to 1619; Minutes of the hearing held on, and Order dated, February 13, 2020, Docket Vol. III, pp. 1622 to 1627; Oath of Commission dated October 1, 2019, Docket Vol. III, p. 1486. 35. Oath of Commission dated October 1, 2019, Docket Vol. III, p. 1486; Minutes of the hearing held on, and Order dated, October 1, 2019, Docket Vol. III, pp. 1483 to 1485, and 1487 to 1488, respectively. 36. Exhibit "P-80", Docket Vol. III, pp. 1509 to 1592. 37. Refer to the Minutes of the hearing held on, and Order dated, February 13, 2020, Docket Vol. III, pp. 1622 to 1627. 38. Docket Vol. III, pp. 1629 to 1646. 39. Docket Vol. III, pp. 1653 to 1660. 40. Docket Vol. III, pp. 1664 to 1667. 41. Docket Vol. III, pp. 1673 to 1677. 42. Records Verification dated October 21, 2020 issued by the Judicial Records Division of this Court, Docket Vol. IV, p. 2161. 43. Docket Vol. IV, pp. 2185 to 2188. 44. Docket Vol. IV, pp. 2189 to 2210. 45. Docket Vol. IV, pp. 2215 to 2222. 46. Resolution dated June 17, 2021, Docket Vol. IV, p. 2230. 47. Stipulation of Issues, JSFI, Docket Vol. II, p. 898. 48. AN ACT AMENDING SECTIONS 27, 28, 34, 106, 107, 108, 109, 110, 111, 112, 113, 114, 116, 117, 119, 121, 148, 151, 236, 237 AND 288 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES. 49. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue , G.R. No. 155732, April 27, 2007; San Roque Power Corporation vs. Commissioner of Internal Revenue , G.R. No. 180345, November 25, 2009; and AT&T Communications Services Philippines, Inc. , G.R. No. 182364, August 3, 2010. 50. Steag State Power, Inc. (Formerly State Power Development Corporation) vs. Commissioner of Internal Revenue , G.R. No. 205282, January 14, 2019; Rohm Apollo Semiconductor Philippines vs. Commissioner of Internal Revenue , G.R. No. 168950, January 14, 2015. 51. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue, supra ; San Roque Power Corporation vs. Commissioner of Internal Revenue, supra ; and AT&T Communications Services Philippines, Inc. , supra . 52. Id. 53. Id. 54. Id. 55. Id. 56. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue , supra ; and San Roque Power Corporation vs. Commissioner of Internal Revenue , supra . 57. Intel Technology Philippines, Inc. vs. Commissioner of Internal Revenue , supra ; San Roque Power Corporation vs. Commissioner of Internal Revenue , supra ; and AT&T Communications Services Philippines, Inc. , supra . 58. Docket Vol. I, pp. 129 to 140, at p. 134. 59. Docket Vol. I, pp. 778 to 784. 60. 703 Phil. 310 (2013). 61. Par. 1.3, Stipulation of Facts, JSFI, Docket Vol. II, p. 897. 62. SUBJECT: Consolidated Value-Added Tax Regulations of 2005. 63. SUBJECT: Amending Certain Provisions of Revenue Regulations No. 16-2005, As Amended, Otherwise Known as the Consolidated Value-Added Tax Regulations of 2005. 64. G.R. No. 150154, August 9, 2005. 65. Commissioner of Internal Revenue vs. Sekisui Jushi Philippines, Inc. , G.R. No. 149671, July 21, 2006. 66. G.R. No. 183531, March 25, 2015. 67. Exhibit "P-9", Docket Vol. III, pp. 1749 to 1750. 68. Exhibits "P-86", "P-87", and "P-88". 69. Date format: Month/Day/Year. 70. Exhibit "P-85". 71. Date format: Month/Day/Year. 72. Date format: Month/Day/Year. 73. Fort Bonifacio Development Corporation vs. Commissioner of Internal Revenue , G.R. Nos. 158885 and 170680, April 2, 2008. 74. Exhibits "P-26" and its submarkings, and "P-27" and its submarkings. 75. JRA Philippines, Inc. vs. Commissioner of Internal Revenue , G.R. No. 171307, August 28, 2013. 76. Nippon Express (Philippines) Corporation vs. Commissioner of Internal Revenue , G.R. No. 191495, July 23, 2018. 77. Eastern Telecommunications Philippines, Inc. vs. Commissioner of Internal Revenue , G.R. No. 183531, March 25, 2015. 78. With P0.01 difference due to rounding off. 79. Exhibit "P-9", Line 19B. 80. Exhibit "P-9" (Line 20A). 81. Edison (Bataan) Cogeneration Corporation vs. Commissioner of Internal Revenue, et seq., G.R. Nos. 201665 and 201668, August 30, 2017; Commissioner of Internal Revenue vs. Philippine National Bank, G.R. No. 180290, September 29, 2014; Commissioner of Internal Revenue vs. United Salvage and Towage (Phils.), Inc. , G.R. No. 197515, July 2, 2014; Dizon vs. Court of Tax Appeals, et al. , G.R. No. 140944, April 30, 2008; Atlas Consolidated Mining and Development Corporation vs. Commissioner of Internal Revenue , G.R. No. 145526, March 16, 2007; and Commissioner of Internal Revenue vs. Manila Mining Corporation , G.R. No. 153204, August 31, 2005. 82. Commissioner of Internal Revenue vs. S.C. Johnson & Son, Inc. , G.R. No. 127105, June 25, 1999. 83. Citibank N.A. vs. Court of Appeals and the Commissioner of Internal Revenue , G.R. No. 107434, October 10, 1997.