Connect with us

Hi, what are you looking for?


CTA affirms partial refund of Toyota’s customs duties and excess VAT


THE Court of Tax Appeals (CTA) has upheld the ruling granting Toyota Motor Philippines Corp.’s refund claim in the reduced amount of P144.13 million for excess customs duties and value-added tax (VAT) on motor vehicles imported from Japan from January to June 2010.

In a 19-page decision on Nov. 24 and made public on Nov. 29, the CTA full court said its first division had jurisdiction to review the actions of a district collector of the Bureau of Customs.

The tribunal noted that there was an “unreasonable” delay in resolving Toyota’s administrative claims.

“From the foregoing, the CTA First Division correctly applied an exception to the doctrine of exhaustion of administrative remedies — when there is unreasonable delay or official inaction leading to prejudice,” Associate Justice Jean Marie A. Bacorro-Villena said in the ruling.

The automotive firm filed its claim on Jan. 28, 2016, more than four years after the district collector failed to act on its previous claim for refund.

It ruled that Toyota’s importations of motor vehicles in 2010 were entitled to 0% customs duties after Japan and the Republic of the Philippines Economic Partnership Agreement (JPEPA) was signed into law.

Under JPEPA, motor vehicles with cylinder capacities above 3,000 cubic centimeters are entitled to 0% customs duty rates.

In March 2011, the firm filed a claim for a refund worth P231.66 million of its overpaid VAT and customs duties.

Toyota argued that since it paid the customs duties for its knocked-down importation fees, it was entitled to zero-rated sales.

The tax court ruled the firm was able to substantiate that P144.13 million of its original claim could be traced to zero-rated sales.

Under the country’s tax code, zero-rated sales are transactions made by VAT-registered taxpayers that do not translate to output tax.

Sales subject to 0% tax must have the term “zero-rated sale” on the company’s official receipts and invoices.

“We agree that it is the intention of the said executive order to implement the 0% duties on importations of motor vehicles with a cylinder capacity exceeding 3,000 cc starting 01 January 2010,” the CTA said referring to the order establishing the JPEPA. — John Victor D. Ordoñez

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!


Editor’s Pick

<?xml encoding=”utf-8″ ??> Pressure on the Tory Party chairman increases as the head of HMRC says there are no penalties for ‘innocent errors’. Nadhim...

Editor’s Pick

<?xml encoding=”utf-8″ ??> With the increased threat of industrial strike action looming across the UK, we consider whether a force majeure clause can strike...

Editor’s Pick

<?xml encoding=”utf-8″ ??> TSB’s 5,700 staff and executives are to share a 10% bigger bonus pot this year, after rising interest rates pushed the...

Editor’s Pick

<?xml encoding=”utf-8″ ??> NatWest is to shut another 23 branches in England and Wales, adding to a raft of high street banking closures already...

Editor’s Pick

<?xml encoding=”utf-8″ ??> Shell has put more than 2,000 jobs in the UK at risk after launching a “strategic review” of its domestic energy...

Editor’s Pick

<?xml encoding=”utf-8″ ??> British taxpayers have become shareholders in a further 53 companies backed by a government rescue funding scheme. These firms include a...

You May Also Like


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.