Petitioner Western Mindanao Power Corporation claimed a tax refund of input VAT, asserting its sales to the National Power Corporation were zero-rated. However, the Court of Tax Appeals dismissed the claim because WMPC's invoices and receipts did not prominently state "zero-rated" as required. While WMPC argued the requirement was merely a compliance provision, the Supreme Court affirmed the CTA's ruling, finding that clearly identifying zero-rated status on invoices is mandatory to validly claim a VAT refund or credit.
Petitioner Western Mindanao Power Corporation claimed a tax refund of input VAT, asserting its sales to the National Power Corporation were zero-rated. However, the Court of Tax Appeals dism…