CHEVRON HOLDINGS, INC. v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES COURT OF TAX APPEALS QUEZON CITY SECOND DIVISION CHEVRON HOLDINGS, CTA CASE NO. 9021 INC ., Members: Petitioner, CASTANEDA, JR., Chairperson CASANOVA, and MANAHAN, JJ. -versus- COMMISSIONER OF Promulgated: INTERNAL REVENUE, v FEB 05 2018 g-: J-( 4 �,_, . Respondent. x----------------------------------------------------------------------------------x DECISION CASTANEDA, JR., J.: THE CASE This is a Petition for Review1 filed by Chevron Holdings, Inc. to seek the refund or issuance of a tax credit certificate (TCC) in the aggregate amount of P101,103,433.99, allegedly representing its /t- excess and unutilized input value-added tax (VAT) attributable to zero- rated transactions for the four (4) quarters of calendar year (CY) 2013. 1 Docket Vol. I, pp. 10-18.

DECISION CTA CASE NO. 9021 THE FACTS Petitioner Chevron Holdings, Inc. is the Philippine branch of Chevron Holdings, Inc. (CHI), a multinational company organized and existing under and by virtue of the laws of the State of Delaware, United States of America. It is licensed by the Securities and Exchange Commission (SEC) to transact business in the Philippines as a regional operating headquarters (ROHQ) under SEC Registration No. A199802486 dated June 3, 1998 with registered office address at the 35th Floor, Yuchengco Tower, RCBC Plaza, 6819 Ayala Avenue, 1200 Makati City. 2 Petitioner is likewise registered with the BIR as a VAT taxpayer and was issued a Certificate of Registration No. OCN 8RC0000039799 dated July 30, 1998 with Tax Identification Number (TIN) 201-056-391-000.3 On the other hand, respondent is the duly appointed Commissioner of Internal Revenue vested under the appropriate laws with the authority to carry out the functions, duties, and responsibilities of said office, including, inter alia, the power to decide, approve, and grant refunds and/or tax credits of overpaid and erroneously paid or collected internal revenue taxes. He holds office at the sth Floor, Bureau of Internal Revenue (BIR) National Office Building, Agham Road, Diliman, Quezon City. Petitioner's purpose, as ROHQ in the Philippines, is limited to general administration and planning; business planning and coordination; sourcing/procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistic services; research and development services and product development; technical support and maintenance; data processing and communication; and business development.4 Petitioner filed its Quarterly VAT Returns (BIR Form No. 2550Q) fo for the four quarters of CY 2013 on the following dates: 2 Exhibits "P-1" and "P-2". 3 Par. 2, Stipulated Facts, Joint Stipulation of Facts and Issues (JSFI), Docket vol. V, p. 1808; Exhibit "P-3". 4 Exhibits "P-1" and "P-2".

DECISION CTA CASE NO. 9021 CY 2013 VAT RETURN DATE FILED First Quarter Original April 24, 20135 Second Quarter Amended January 28, 20146 Original July 25, 20137 Third Quarter Amended March 10, 20148 Fourth Quarter Original October 22, 20139 Amended January 24, 201410 Original January 24, 201411 Amended February 19, 201412 Petitioner then filed with the BIR Large Taxpayer Services (BIR- LTS) and BIR Large Taxpayers Excise and Audit Division (BIR-LTEAD II) different administrative claims for the refund and/or issuance of TCC for unutilized input VAT for the four quarters of CY 2013, with the following details: CY 2013 Date of Filing of Amount of Administrative Claim 1st Quarter 2nd Quarter Claim P21,119,273.12 3rd Quarter October 31, 201413 P25,016,267.42 4th Quarter November 3, 201414 P27,170,624.04 November 4, 201415 P27,797,269.41 November 5, 201416 On December 12, 2014, petitioner received Letter of Authority (LOA) No. LOA-124-2014-00000140 (eLA201100087136)17 dated November 13, 2014 for the examination of petitioner's books of accounts and other accounting records for VAT for the period of January 1, 2013 to December 31, 2013.18 J1- 5 Exhibit "P-4.1". 6 Exhibit "P-4.2". 7 Exhibit "P-5-1". 8 Exhibit "P-5.2". 9 Exhibit "P-6.1". 10 Exhibit "P-6.2". 11 Exhibit "P-7.1". 12 Exhibit "P-7.2". 13 Par. 3, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.1". 14 Par. 4, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.2". 15 Par. 5, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.3". 16 Par. 6, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.4". 17 Exhibit "P-9". 18 Par. 7, Stipulated Facts, JSFI, Docket Vol. V, p. 1808.

DECISION CTA CASE NO. 9021 On March 5, 2015, petitioner received a letter19 dated January 30, 2015 from the BIR-LTS which denied its administrative claim for refund or issuance ofTCC for unutilized input VAT for the four quarters of CY 2013 in the aggregate amount of P101, 103,433.99.20 Thus, petitioner filed the present Petition for Review on March 30, 2015. 21 Within the extended time granted by the Court,22 respondent filed his Answer23 on July 2, 2015, interposing the following special and affirmative defenses: "SPECIAL AND AFFIRMATIVE DEFENSES 4. Respondent hereby reiterates and repleads the preceding graphs of this Answer as part of her Special and Affirmative Defenses; Petitioner's claim for refund of excess and unutilized input VAT should be denied for petitioner's failure to establish the recipients of its services do business outside the Philippines 5. Petitioner anchors its claim for refund or tax credit under Section 108 (B) of the NIRC as amended, which states that: (B) Transactions Subject to Zero Percent (0�/o) Rate - The following services performed in the Philippines by )h- 19 Exhibit "P-10". 20 Par. 8, Stipulated Facts, JSFI, Docket Vol. V, p. 1808. 21 Docket Vol. I, pp. 10-20. 22 Orders dated May 11, 2015, June 1, 2015, and June 30, 2015, Docket Vol. I, pp. 103, 109, and 115. 23 Docket Vol. I, pp. 116-124.

DECISION CTA CASE NO. 9021 VAT-registered persons shall be subject to zero percent (0�/o) rate. XXX (2) Services other than those mentioned in the preceding paragraph, rendered to a person engaged in business conducted outside the Philippines or to a non- resident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP). XXX 6. According to the above stated provision, services must be performed in the Philippines by a VAT registered person to a person engaged in business conducted outside the Philippines or to a non-resident person not engaged in business who is outside the Philippines when the services are performed. 7. Compliance with the aforementioned provisions of the 1997 NIRC, as amended, as well as the existing rules and regulations are necessary to establish its claim, that indeed there is the presence of valid zero-rated sales which would warrant the grant of the administrative application for refund of its unapplied/unutilized input VAT as well as the submission of supporting documents to corroborate the claim being applied for. 8. Simply put, the place where the recipient of the service conducts its business is material to consider a zero- rated transaction. In fact, in the Commissioner offt.-

DECISION CTA CASE NO. 9021 Internal Revenue v.. Burmeister and Scandinavian Contractor Mindanao, Inc. case, the High Court found that, although the place of the consumption of the service does not affect the entitlement of a transaction to zero-rating, the place where the recipient conducts its business does. 9. The Supreme Court in the case of Accenture, Inc., vs. CIR, GR No. 190102, July 11,2012, ruled as follows: Accenture has failed to establish that the recipients of its services do business outside the Philippines. Accenture argues that based on the documentary evidence it presented, it was able to establish the following circumstances: 1. The records of the Securities and Exchange Commission (SEC) show that Accenture's clients have not established any branch office in which to do business in the Philippines. 2. For these services, Accenture bills another corporation, Accenture Participations B.V. (APB), which is likewise a foreign corporation with no 'presence in the Philippines.' 3. Only those not doing business in the Philippines can be required under BSP rules to pay in acceptable currency for their purchase of goods and services from the Philippines. Thus, in a domestic transaction, where the provider and recipient of services are both doing business in the Philippines, the BSP ;z_

DECISION erA CASE NO. 9021 cannot require any party to make payment in foreign currency. Accenture claims that these documentary pieces of evidence are supported by the Report of Emmanuel Mendoza, the Court-commissioned Independent Certified Public Accountant. He ascertained that Accenture's gross billings pertaining to zero-rated sales were all supported by zero-rated Official Receipts and Billing Statements. These documents show that these zero-rated sales were paid in foreign exchange currency and duly accounted for in the rules and regulations of the BSP. In the CTA's opinion, however, the documents presented by Accenture merely substantiate the existence of the sales, receipt of foreign currency payments, and inward remittance of the proceeds of these sales duly accounted for in accordance with BSP rules. Petitioner presented no evidence whatsoever that these clients were doing business outside the Philippines. Accenture insists, however, that it was able to establish that it had rendered services to foreign corporations doing business outside the Philippines, unlike in Burmeister, which allegedly involved a foreign corporation doing business in the Philippines. We deny Accenture's Petition for a tax refund. The evidence presented by Accenture may have established that its clients are foreign. This fact Jr-

DECISION CTA CASE NO. 9021 does not automatically mean, however, that these clients were doing business outside the Philippines. After all, the Tax Code itself has provisions for a foreign corporation engaged in business within the Philippines and vice versa, to wit: SEC. 22. Definitions- When used in this Title: XXX (H) The term 'resident foreign corporation applies to a foreign corporation engaged in trade or business within the Philippines. (I) The term 'nonresident foreign corporation applies to a foreign corporation not engaged in trade or business within the Philippines. (Emphasis in the original) Consequently, to come within the purview of Section 108(8)(2), it is not enough that the recipient of the service be proven to be a foreign corporation; rather, it must be specifically proven to be a nonresident foreign corporation. There is no specific criterion as to what constitutes 'doing' or 'engaging in' or 'transacting' business. We ruled thus in Commissioner of Internal Revenue v. British Overseas Airwavs Corporation: x x x. There is no specific criterion as to what constitutes 'doing' or 'engaging in' or 'transacting' business. Each case must~

DECISION CTA CASE NO. 9021 be judged in the light of its peculiar environmental circumstances. The term implies a continuity of commercial dealings and arrangements, and contemplates, to that extent, the performance of acts or works or the exercise of some of the functions normally incident to, and in progressive prosecution of commercial gain or for the purpose and object of the business organization. 'In order that a foreign corporation may be regarded as doing business within a State, there must be continuity of conduct and intention to establish a continuous business, such as the appointment of a local agent, and not one of a temporary character.' A taxpayer claiming a tax credit or refund has the burden of proof to establish the factual basis of that claim. Tax refunds, like tax exemptions, are construed strictly against the taxpayer. Accenture failed to discharge this burden. It alleged and presented evidence to prove only that its clients were foreign entities. However, as found by both the CfA Division and the CfA En Bane, no evidence was presented by Accenture to prove the fact that the foreign clients to whom petitioner rendered its services were clients doing business outside the Philippines. As ruled by the CfA En Bane, the Official Receipts, Intercompany Payment Requests, Billing Statements, Memo Invoices-Receivable, Memo Invoices- Payable, and Bank Statements presented by Accenture merely substantiated the existence of sales, receipt of foreign currency payments, and inward )t-

DECISION CTA CASE NO. 9021 remittance of the proceeds of such sales duly accounted for in accordance with BSP rules, all of these were devoid of any evidence that the clients were doing business outside of the Philippines. 10. Petitioner in its petition for review merely mentioned in passing that petitioner rendered services to persons located and conducting business outside the Philippines. Pertinent part of the petition is quoted hereunder for easy reference, to wit: 'During the four quarters of CY 2013, Petitioner rendered services in the Philippines to persons located and conducting business outside the Philippines. As consideration for such services. Petitioner was paid in acceptable foreign currencies and accounted for in accordance with rules and regulations of Bangko Sentral ng Pilipinas (BSP).' 11. The foregoing allegations are mere self-serving allegations not supported by any concrete evidence. 12. Further, petitioner alleged in its petition that 'Despite the issuance of the LOA, Respondent neither notified nor required petitioner to submit any additional document in support of its administrative claims for refund'. 13. Such argument runs contrary to its own allegations contained under paragraphs 10,11,12 and 13 of the petition which states that: Petitioner attached to its administrative claim for refund the relevant documents required by laws and pertinent regulations. ~

DECISION CTA CASE NO. 9021 14. In addition, petitioner through its General Manager Kee Teek Hong executed a sworn certification4 which certify that the documents submitted are complete for the purpose of processing its claim for Value Added Tax (VAT) refund/credit and that those documents are the only documents that will be presented to support its claim. Pursuant to Revenue Memorandum Circular No. 54-2014 dated June 11,2014, a decision shall be rendered by respondent based only on the documents submitted. 15. A perusal of the documents submitted disclosed that not a bit would prove that petitioner's clients are doing business outside the Philippines. 16. Accordingly, the documents submitted could not justify the essential requirement of proving that the services were rendered to foreign client doing business outside the Philippines to qualify as zero-rated sales. Thus, the claim for refund/tax credit certificate of unutilized input tax amounting to P101,103,433.99 covering the period January to December 2013 was properly denied. 17. In an action for refund, the burden of proof is on the taxpayer who claims the exemption and he must justify his claim by the clearest grant under the Constitutional or statutory law and cannot be permitted by vague implications. The taxpayer is charged with the burden of proving that he has complied with and satisfied all the statutory and administrative requirements to be entitled to the tax refund." The Pre-Trial Conference was set on August 6, 2015.24 ~ 24 Notice of Pre-Trial Conference, Docket Vol. I, pp. 127-128.

DECISION CTA CASE NO. 9021 The Respondent's Pre-Trial Brief25 was filed on September 10, 2015; while the Petitioner's Pre-Trial Brief26 was filed on September 11, 2015. The parties filed their Joint Stipulations of Facts and Issues27 on October 7, 2015. This was approved by the Court and adopted in the Pre-Trial Order28 on October 14, 2015. Upon motion of petitioner,29 the Court commissioned Ms. Czarina R. Miranda, as the Independent Certified Public Accountant (ICPA).30 During trial, petitioner presented the following witnesses: Ms. Carolyn C. Ardina31, its Finance-Coordinator - Business Analysis and Support; Ms. Ma. Nerita C. FerreoP2, its Manager- Business Analysis and Support; Ms. Jennifer A. Valdez33, its Fixed Assets Team Leader; and Ms. Czarina R. Miranda34, the Court-commissioned !CPA. Petitioner's Formal Offer of Evidence with Motion to Set Commissioner's Hearing35 was filed on April 29, 2016. In the Resolution36 dated May 24, 2016, the Court granted petitioner's Motion to Set Commissioner's Hearing while the resolution of its Formal Offer of Evidence was held in abeyance. pz.- 25 Docket Vol. I, pp. 141-144. 26 Docket Vol. I, pp. 155-178. 27 Docket Vol. V, pp. 1807-1822. 28 Docket Vol. V, pp. 1825-1831. 29 Docket Vol. V, pp. 1859-1862. 30 Oath of Commission, Docket Vol. V, p. 1936. 31 Minutes of the Hearing dated October 19, 2015 and March 30, 2016, Docket Vol. V, p. 1840 and 2108; Exhibits "P-27" and "P-67", Sworn Statement of Ms. Carolyn C. Ardina To Questions Propounded By Atty. Strella Marie G. Sacdalan; and Supplemental Sworn Statement of Ms. Carolyn C. Ardina To Questions Propounded By Atty. Strella Marie G. Sacdalan, Docket Vol. I, pp. 251-265 and Vol. V, pp. 2035-2042. 32 Minutes of the Hearing dated November 11, 2015, Docket Vol. V, p. 1928; Exhibit "P-26", Amended Sworn Statement of Ms. Ma. Nerita C. Ferreol To Questions Propounded By Atty. Strella Marie G. Sacdalan, Docket Vol. V, pp. 1881-1914. 33 Minutes of the Hearing dated November 11, 2015, Docket Vol. V, p. 1928; Exhibit "P-28", Sworn Statement of Ms. Jennifer A. Valdez To Questions Propounded By Atty. Strella Marie G. Sacdalan, Docket Vol. I, pp. 182-187. 34 Minutes of the Hearing dated January 25, 2016 and March 30, 2016, Docket Vol. V, pp. 2027 and 2108; Exhibits "P-56" and "P-68", Sworn Statement of Ms. Czarina R. Miranda To Questions Propounded By Atty. Strella Marie G. Sacdalan; and Supplemental Sworn Statement of Ms. Czarina R. Miranda To Questions Propounded By Atty. Strella Marie G. Sacdalan, Docket Vol. V, pp. 1960-1993 and 2072-2074. 35 Docket Vol. V, pp. 2112-2190. 36 Docket Vol. V, pp. 2197-2198.

DECISION CfA CASE NO. 9021 Thereafter, petitioner filed a Supplemental Formal Offer of Evidence37 on June 17, 2016. This was resolved by the Court together with petitioner's Formal Offer of Evidence in the Resolution38 dated August 24, 2016, wherein the Court admitted Exhibits "P-1", "P-2", "P- 3", "P-4.1", "P-4.2", "P-5.1", "P-5.2", "P-6.1", "P-6.2", "P-7.1", "P-7.2", "P-8.1", "P-8.1.1", "P-8.2", "P-8.2.1", "P-8.3", "P-8.3.1", "P-8.4", "P- 8.4.1", "P-9", "P-10", "P-11.1", "P-11.2", "P-12.1", "P-12.2", "P-13", "P- 14.1", "P-14.2", "P-15.1", "P-15.2", "P-16.1", "P-16.2", "P-16.3", "P- 16.4", "P-16.5", "P-16.6", "P-16. 7", "P-16.8", "P-16. 9", "P-16.10", "P- 16.11", "P-16.12", "P-16.13", "P-16.14", "P-16.15", "P-16.16", "P- 16.17", "P-16.18", "P-16.19", "P-16.20", "P-16.21", "P-16.22", "P- 16.23", "P-16.24", "P-16.25", "P-16.26", "P-16.27", "P-16.28", "P- 16.29", "P-16.30", "P-16.31 ", "P-16.32", "P-16.33", "P-16.34", "P- 16.35", "P-16.36", "P-16.37", "P-16.38", "P-16.39", "P-16.40", "P- 16.41", "P-16.42", "P-16.43", "P-16.44", "P-16.45", "P-16.46", "P- 16.47", "P-16.48", "P-16.49", "P-16.50", "P-16.51 ", "P-16.52", "P- 16.53", "P-16.54", "P-16.55", "P-16.56", "P-16.57", "P-16.58", "P- 16.59", "P-17.1", "P-17.2", "P-17.3", "P-17.3.1", "P-17.4", "P-17.5", "P- 17.6", "P-17.7", "P-17.8", "P-17.9", "P-17.9-1", "P-17.10", "P-17.11", "P-17.12", "P-17.13", "P-17.13.1", "P-17.14", "P-17.14.1", "P-17.15", "P-17.16", "P-17.17", "P-17.17.1", "P-17.18", "P-17.19", "P-17.20", "P- 17.21", "P-17.22", "P-17.23", "P-17.23.1", "P-17.24", "P-17.25", "P- 17.26", "P-17.26.1", "P-17.27", "P-17.28", "P-17.29", "P-17.29.1", "P- 17.30", "P-17.31", "P-17.32", "P-17.33", "P-17.34", "P-17.35", "P- 17.36", "P-17.36.1", "P-17.37", "P-17.38", "P-17.39", "P-17.40", "P- 17.41", "P-17.42", "P-17.43", "P-17.44", "P-17.45", "P-17.46", "P- 18.1", "P-18.2", "P-18.3", "P-18.4", "P-18.5", "P-18.6", "P-18.7", "P- 18.8", "P-19.1", "P-19.1.1", "P-19.2", "P-19.2.1", "P-19.3", "P-19.3.1", "P-19.4", "P-19.4.1", "P-19.5", "P-19.5.1", "P-19.6", "P-19.6.1", "P- 19.7", "P-19.7.1", "P-19.8", "P-19.8.1", "P-19.9", "P-19.9.1", "P- 19.10", "P-19.10.1", "P-19.11", "P-19.11.1", "P-19.12", "P-19.12.1", "P-19.13", "P-19.13.1", "P-19.14", "P-19.14.1", "P-19.15", "P-19.15.1", "P-19.16", "P-19.16.1", "P-19.17", "P-19.17.1", "P-19.18", "P-19.18.1", "P-19.19", "P-19.19.1 ", "P-19.20", "P-19.20.1", "P-19.21 ", "P-19.21.1 ", "P-19.22", "P-19.22.1", "P-19.23", "P-19.23.1", "P-19.24", "P-19.24.1", "P-19.25", "P-19.25.1", "P-19.26", "P-19.26.1", "P-19.27", "P-19.27.1", "P-19.28", "P-19.28.1", "P-19.29", "P-19.29.1", "P-19.30", "P-19.30.1", "P-19.31", "P-19.31.1", "P-19.32", "P-19.32.1", "P-19.33", "P-19.33.1", "P-19.34", "P-19.34.1", "P-19.35", "P-19.35.1", "P-19.36", "P-19.36.1", "P-19.37", "P-19.37.1", "P-19.38", "P-19.38.1", "P-19.39", "P-19.39.1", "P-19.40", "P-19.40.1", "P-19.41", "P-19.41.1", "P-19.42", "P-19.42.1", ?z- 37 Docket Vol. V, pp. 2206-2212. 38 Docket Vol. V, pp. 2244-2248.

DECISION erA CASE NO. 9021 "P-19.43", "P-19.43.1", "P-19.44", "P-19.44.1", "P-19.45", "P-19.45.1", "P-19.46", "P-19.46.1", "P-19.47", "P-19.47.1", "P-19.48", "P-19.48.1", "P-19.49", "P-19.49.1", "P-19.50", "P-19.50.1 ", "P-19.51 ", "P-19.51.1", "P-19.52", "P-19.52.1", "P-20", "P-20.1", "P-20.1.1", "P-20.2", "P- 20.2.1 ", "P-20.3", "P-20.3.1 ", "P-20.4", "P-20.4.1", "P-20.5", "P- 20.5.1", "P-20.6", "P-20.6.1", "P-20.7", "P-20.7.1", "P-20.8", "P- 20.8.1", "P-21.1", "P-21.2", "P-21.3", "P-21.4", "P-21.5", "P-21.6", "P- 21.7", "P-21.8", "P-21.9", "P-21.10", "P-21.11", "P-21.12", "P-21.13", "P-21.14", "P-21.15", "P-21.16", "P-21.17", "P-21.18", "P-21.19", "P- 21.20", "P-21.21", "P-21.22", "P-21.23", "P-21.24", "P-21.25", "P- 21.26", "P-21.27", "P-21.28", "P-21.29", "P-22.1", "P-22.2", "P-22.3", "P-23" "P-24" "P-25" "P-26" "P-26-1" "P-27" "P-27 1" "P-28" "P-'II I I I 'I I 28-1", "P-29.1", "P-29.2", "P-29.3", "P-29.4", "P-31", "P-32", "P-33", "P-34", "P-35.1", "P-35.2", "P-35.3", "P-35.4", "P-36.1", "P-36.2", "P- 36.3", "P-36.4", "P-37.1", "P-37.2", "P-37.3", "P-37.4", "P-38.1", "P- 38.2", "P-38.3", "P-38.4", "P-39.1", "P-39.2", "P-39.3", "P-40.1", "P- 40.2", "P-40.3", "P-40.4", "P-41", inclusive of sub-markings", "P-42, inclusive of sub-markings", "P-43", "P-44.1", "P-44.2", "P-44.3", "P- 44.4", "P-45", "P-46", "P-47", "P-48.1", "P-48.2", "P-48.3", "P-48.4", "P-49.1", "P-49.2", "P-49.3", "P-50.1", "P-50.2", "P-51.1", "P-51.2", "P- 51.3", "P-51.4", "P-52.1", "P-52.2", "P-52.3", "P-52.4", "P-53.1", "P- 53.2", "P-53.3", "P-53.4", "P-54", "P-55", "P-55.1", "P-56", "P-56.1", "P-57.1", "P-57.2", "P-58.1", "P-58.2", "P-58.3", "P-59.1", "P-59.2", "P- 60.1", "P-60.2", "P-61.1", "P-61.2", "P-62.1", "P-62.2", "P-63.1", "P- 63.2", "P-64.1", "P-64.2", "P-65.1", "P-65.2", "P-66.1", "P-66.2", "P- 67", "P-67.1", "P-68", "P-68.1", and "P-75". Respondent then presented his sole witness, Revenue Officer Dominic Morales39� Respondent's Formal Offer of Evidence40 was filed on September 29, 2016. In the Resolution41 dated November 25, 2016, the Court Jz- admitted Exhibits "R-1"I "R-2"I "R-3"I "R-4"I "R-5"I "R-6"I "R-7"I and "R-7-a". 39 Minutes of the Hearing dated September 19, 2016, Docket Vol. V, p. 2249; Exhibit "R-7", Judicial Affidavit of Dominic Morales, Docket Vol. I, pp. 150-154. 40 Docket Vol. v, pp. 2251-2253. 41 Docket Vol. V, pp. 2265-2266.

DECISION CfA CASE NO. 9021 Petitioner's Memorandum42 was filed on January 16, 2017; while respondent failed to file his memorandum43 � Thus, in the Resolution44 dated February 6, 2017, the present Petition for Review was declared by the Court as deemed submitted for decision. THE ISSUE The parties stipulated the following issue45 for resolution of this Court: Whether or not Petitioner is entitled to the claim for refund or issuance of TCC for its excess or unutilized input VAT in the aggregate amount of Php101,103,433.99 for the four (4) quarters of CY 2013. THE COURT'S RULING Pertinent to the resolution of the present case is Section 112(A) and (C) of the National Internal Revenue Code (NIRC) of 1997, as amended, which provides: "SEC. 112. Refunds or Tax Credits ofInput Tax. - (A) Zero-Rated or Effectively Zero-RatedSales. -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(8)(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 1"" 42 Docket Vol. V, pp. 2271-2302. 43 Records Verification dated February 1, 2017, Docket Vol. V, p. 2303. 44 Docket Vol. V, p. 2304. 45 Issue, JSFI, Docket Vol. V, p. 1809.

DECISION CTA CASE NO. 9021 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: Provided, finally, That for a person making sales that are zero-rated under Section 108(8)(6), the input taxes shall be allocated ratably between his zero-rated and non-zero- rated sales. XXX XXX XXX (C) Period within which Refund or Tax Credit ofInput Taxes shall be Made.- In proper cases, the Commissioner shall grant a refund or issue the 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 provision, in order to be entitled to refund or tax credit of input tax due or paid attributable to zero-rated or effectively zero-rated sales, the following requisites must be complied with: 1. the taxpayer-claimant must be VAT-registered; 2. there must be zero-rated or effectively zero-rated sales; 3. input taxes were incurred or paid; 4. such input taxes are attributable to zero-rated or effectively zero-rated sales; fo-

DECISION CTA CASE NO. 9021 5. said input taxes were not applied against any output VAT liability; and 6. the claim was filed within the prescribed periods both in the administrative and judicial levels. Before addressing the stipulated issue, the Court shall first determine the timeliness of petitioner's administrative and judicial claims. Petitioner's administrative and judicial claims were timely filed Pursuant to Section 112(A) of NIRC of 1997, as amended, the application for tax credit certificate/refund of unutilized excess input VAT must be filed within two years after the close of the taxable quarter when the zero-rated or effectively zero-rated sales were made. The present claim covers the first, second, third and fourth quarters of CY 2013, which closed on March 31, 2013, on June 30, 2013, on September 30, 2013 and on December 31, 2013, respectively. Counting two years from the said dates, petitioner had until March 31, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, respectively, within which to file its administrative claim for tax credit certificate/refund. Therefore, petitioner's administrative claims for the said quarters were seasonably filed on October 31, 2014, on November 3, 2014, on November 4, 2014 and on November 5, 2014, respectively, as shown below: CY 2013 Close of the Last Day to File Date of Filing of 1st Quarter Taxable Quarter Administrative Administrative 2nd Quarter 3rd Quarter March 31, 2013 Claim Claim 4th Quarter June 30, 2013 March 31, 2015 October 31, 201446 September 30, 2013 June 30, 2015 November 3, 201447 December 311 2013 September 30, 2015 November 4, 201448 December 31L 2015 November 5[ 201449 46 Par. 3, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.1". 47 Par. 4, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.2". 48 Par. 5, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.3". 49 Par. 6, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-8.4".

DECISION CTA CASE NO. 9021 Anent the timeliness of petitioner's judicial appeal, Section 112(C) of the NIRC of 1997, as amended, states the time requirements for filing a judicial claim for the refund or tax credit of input VAT. The legal provision speaks of two periods: the period of 120 days, which serves as a waiting period to give time for the CIR to act on the administrative claim for a refund or credit; and the period of 30 days, which refers to the period for filing a judicial claim with the CTA.50 It must be noted that the 120-day period begins to run from the date of submission of complete documents supporting the administrative claim. If there is no evidence showing that the taxpayer was required to submit or actually submitted additional documents after the filing of the administrative claim, it is presumed that the complete documents accompanied the claim when it was filed.51 Accordingly, counting 120 days from October 31, 2014, November 3, 2014, November 4, 2014, and November 5, 2014, the respective dates when petitioner filed its administrative claims for refund/issuance of TCC together with the supporting documents covering the first, second, third and fourth quarters of CY 2013, respondent had until February 28, 2015, March 3, 2015, March 4, 2015 and March 5, 2015, respectively, to act on the said claims. However, the records show that it was only on March 5, 2015 that petitioner received a copy of the letter52 dated January 30, 2015 from the BIR-LTS denying its administrative claim for refund/issuance of TCC of input VAT for the year 2013.53 Considering that the denial of petitioner's claim covering the first, second and third quarters was issued by respondent beyond the 120- day period, the 30-day period within which to appeal the said claims to this Court is reckoned from February 28, 2015, March 3, 2015 and March 4, 2015 and ended on March 30, 2015, April 2, 2015 and April 3, 2015, respectively. On the other hand, respondent's letter-denial was timely issued with regard to petitioner's claim covering the fourth quarter of CY 2013; thus, the 30-day period to appeal such claim is /k- 50 RohmApolloSemiconductorPhilippines vs. CommissioneroflnternaiRevenue, G.R. No.168950, January 14, 2015. 51 Silicon Philippines, Inc. (Formerly Intel Philippines Manufacturing, Inc.) vs. Commissioner of Internal Revenue, G.R. No. 182737, March 2, 2016. 52 Exhibit "P-10". 53 Par. 8, Stipulated Facts, JSFI, Docket Vol. V, p. 1808.

DECISION CfA CASE NO. 9021 counted from the date of the denial on March 5, 2015 until April 4, 2015. Accordingly, the Petition for Review covering petitioner's claims for the first, second, third and fourth quarters of CY 2013 was timely filed before this Court on March 30, 2015, as shown below: CY 2013 Date of End of 120 Date of End of 30 End of 30 Date of 1st Quarter Filing of days for the CIR's days from days from Filing of 2nd Quarter CIR to decide Denial Petition for 3rd Quarter Adm. on the claim CIR's CIR's Review 4th Quarter Claim 05-Mar-15 inaction Denial 28-Feb-15 31-0ct-14 03-Mar-15 30-Mar-15 30-Mar-15 04-Mar-15 03-Nov-14 02-Apr-15 04-Nov-14 05-Mar-15 03-Apr-15 05-Nov-14 04-Apr-15 Having determined that petitioner timely filed both its administrative and judicial claims, the Court shall now proceed to make a determination of petitioner's compliance with the other requisites. Petitioner is a VAT-registered entityandhadzero-ratedsales during the subjectperiods Petitioner complied with the first requisite considering that it is a VAT-registered taxpayer with BIR Certificate of Registration No. OCN8RC0000039799 dated July 30, 1998 with Taxpayer's Identification No. 201-056-391-000.54 On the second requisite, i.e., the existence of zero-rated sales, petitioner claims that the services it rendered to its affiliates abroad, which were paid for in foreign currency, are transactions subject to zero percent (0�/o) VAT in accordance with Section 108(8)(2) of the NIRC of 1997, as amended, which states that: "SEC. 108. Value-added Tax on Sale ofServices and Use or Lease ofProperties. - XXX XXX XXX fz- 54 Par. 2, Stipulated Facts, JSFI, Docket Vol. V, p. 1808; Exhibit "P-3."

DECISION CfA CASE NO. 9021 (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�/o) rate: (1) Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported, where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP); (2) Services other than those mentioned in the preceding paragraph rendered to a person engaged in business conducted outside the Philippines or to a nonresident person not engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP);" In the case of Commissioner ofInternal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc.55, the Supreme Court held that in order for the supply of services to be VAT zero-rated under Section 108(8)(2) of the NIRC of 1997, as amended, the following requisites must be met: 1. the services must be other than processing, manufacturing or repacking of goods; 2. the payment for such services must be in acceptable foreign currency accounted for in accordance with the BSP rules and regulations; and 3. the recipient of such services is doing business outside the Philippines. Petitioner complied with the first requisite. Petitioner is licensed by the Securities and Exchange Commission to transact business in the Philippines as a regional operating headquarters (ROHQ) to engage in general administration and planning; business planning and ~ 55 G.R. No. 153205, January 22, 2007.

DECISION CfA CASE NO. 9021 coordination; sourcing/procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistic services; research and development services and product development; technical support and maintenance; data processing and communication; and business development. 56 These services clearly fall within the scope of "services other than processing, manufacturing or repacking of goods" contemplated by the aforementioned provision. In relation to the second requisite, Sections 113(A)(2), (8)(1), (2)(c) and (3) of the NIRC of 1997, as amended, as implemented by Sections 4.113-1(A)(2), (8)(1) and (2)(c) of Revenue Regulations (RR) No. 16-05, provide that a VAT taxpayer, like herein petitioner, shall for every lease of goods or properties and for every sale, barter or exchange of services, issue a VAT official receipt which must contain the following information: "SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons. - (A) Invoicing Requirements. - A VAT-registered person shall issue: XXX XXX XXX (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 VATInvoice 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); p 56 Exhibits "P-1" and "P-2".

DECISION CTA CASE NO. 9021 (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: XXX XXX XXX (c) If the sale is subject to zero percent (0�/o) value- added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; XXX XXX XXX (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service;" (Emphasis supplied) "SEC. 4.113-1. Invoicing Requirements. - (A) A VAT-registered person shall issue:- XXX XXX XXX (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. c;z-

DECISION CTA CASE NO. 9021 (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: XXX XXX XXX (c) If the sale is subject to zero percent (0�/o) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt;" (Emphasis supplied) Pursuant to the foregoing provisions, the foreign currency remittances referred to under Section 108(B)(2) of the NIRC of 1997, as amended, must likewise be supported by VAT zero-rated official receipts. It was established that for services rendered to its affiliates for the four taxable quarters of CY 2013, petitioner was paid in US dollars which were accounted for in accordance with the BSP rules and regulations as evidenced by the Certifications of Inward Remittances57 and Bank Statements58 for CY 2013 issued by JP Morgan Chase Bank N.A - Manila Branch and duly supported by VAT zero-rated official receipts59 issued by petitioner to its client-affiliates. Thus, the second requisite has also been satisfied. In compliance with the third requisite, petitioner presented the following documents showing its client-affiliates are non-resident foreign corporations doing business outside the Philippines: ~z- 57 Exhibit "P-33". 58 Exhibit "P-34". 59 Exhibit "P-31".

DECISION CTA CASE NO. 9021 1. Certification of Non-Registration of Company issued by the SEC; 60 2. Articles/Certificate of Incorporation/Registration and/or other similar documents;61 3. Tax Residence Certificates;62 4. Screenshot of Chevron Subsidiary Governance Website;63 5. Screenshot of US SEC Website;64 and 6. Service Agreements. 65 However, each of the aforesaid documents, standing alone, is inadequate proof that petitioner's client is a non-resident foreign corporation doing business outside the Philippines. While the SEC Certificates of Non-Registration of Company show that the named entities are not registered corporations or partnerships in the Philippines, the same do not prove that such entities are non-resident foreign corporations doing business outside the Philippines. The same holds true with the Articles/Certificates of Incorporation/Registration and Tax Residence Certificates which only prove that therein named entities were incorporated/organized abroad. However, these documents do not necessarily establish that such entities are not doing business in the Philippines. Likewise, the service agreements only indicate the names and addresses of petitioner's customers to whom it renders services but they do not establish that such customers are non-resident foreign corporations doing business outside the Philippines. In the case of Site! Philippines Corporation (formerly Clientlogic Phils., Inc.) vs. Commissioner of Internal Revenu&6, the Supreme Court held that while Sitel's documentary evidence, which included Certifications issued by the Securities and Exchange Commission and)-c- 60 Exhibits "P-16.1" to "P-16.59". 61 Exhibits "P-17.1" to "P-17.46". 62 Exhibits "P-18.1" to "P-18.8". 63 Exhibits "P-19.1" to "P-19.52". 64 Exhibits "P-20.1" to "P-20.8". 65 Exhibits "P-21.1" to "P-21.29". 66 G.R. No. 201326, February 8, 2017.

DECISION CTA CASE NO. 9021 Agreements between Sitel and its foreign clients, may have established that Sitel rendered services to foreign corporations and received payment therefor through inward remittances, said documents failed to specifically prove that such foreign clients were doing business outside the Philippines or have a continuity of commercial dealings outside the Philippines. Therefore, in order to be considered as non-resident foreign corporation doing business outside the Philippines, each entity must be supported, at the very least, by both SEC Certificate of Non- Registration and proof of incorporation/registration in a foreign country (e.g., Articles/Certificate of Incorporation/Registration and/or Tax Residence Certificate) and that there is no other indication which would disqualify said entity in being classified as a non-resident foreign corporation. In this regard, the Court cannot give credence or probative value to the printed screenshots of Chevron Subsidiary Governance Website67 as the information contained therein were retrieved from the database set-up and maintained by petitioner's group of companies. Thus, the said documents are self-serving and can be easily manipulated to favor petitioner in view of its affinity with the entities that maintain or keep the said database. Thus, only the following clients of petitioner for the four quarters of CY 2013 shall be considered as non-resident foreign corporations doing business outside the Philippines: SEC Articles/Certificate of Tax Screenshot Certificate Incorporation/Registration and/or other Residence of US SEC Certificate Website of Non- similar document P-18.1 and Registration - Client Exhibit No. Document P-18.8 Asia Pacific Marine Services (EF) B.V. P-16.1 - - P-18.3 - P-16.14 Chevron Corporation P-16.15 P-17.8, Restated Certificate of - - Chevron (China) Investment Co P-16.22 P-17.40 Incorporation Ltd P-16.24 P-17.9 to - - Chevron Hong Kong Limited P-17.9.1 Articles of Association P-16.25 Certificate of Change of Name - - Chevron International Limited P-17.12 P-17.13 to Certificate of Incorporation - - Chevron International pte Ltd P-17.13.1 P-17.14 to Memorandum and Articles of P-17.14.1, Association, Certificate P-17.43 67 Exhibits "P-19.1" to "P-19.52".

DECISION GrA CASE NO. 9021 Chevron Iraq (Sarta) Limited - P-16.26 P-17.15 Confirming Incorporation of - - Branch Company P-17.16 Memorandum of Association of - - Chevron Liberia Limited P-16.27 P-17.17 to Company Limited by Shares - P-16.28 P-17.17.1 Certificate of Business - Chevron Lubricants Lanka PLC P-16.29 Registration (Foreign - P-16.30 P-17.18 Corporation) - Chevron Malaysia Limited P-16.32 - - Chevron Marine Products LLC - P-16.33 P-17.19 Articles of Association - - Int'l P-16.34 Certificate of Change of Name - P-16.35 P-17.20 and Incorporation P-18.4 Chevron Neftegaz Inc. P-16.36 P-17.21, Certificate of Amendment of P-18.5 P-20.3 P-16.37 P-17.44 Certificate of Formation P-20.4 Chevron New Zealand P-17.22, Certificate of Amendment of - P-20.5 P-17.41 Certificate of Incorporation - Chevron North Sea Limited P-17.23 to - P-17.23.1 Certificate of Incol'poration - Chevron Oronite Company LLC Certificate of Incorporation on - P-17.24 Change of Name - - Chevron Oronite pte Ltd - Chevron Overseas Services P-17.25 Certificate of Formation P-18.6 - Corporation Notice of Resolution of Change - P-17.26 to of Name - Chevron Pakistan Limited P-16.38 P-17.26.1 Certificate of Amendment of - P-20.6 P-16.41 Certificate of Incorporation - P-20.7 Chevron Products UK Limited P-16.44 P-17.27 Certification issued by the P-16.45 Registrar General of Bahama P-18.7 - Chevron Shipping Company LLC P-16.46 P-17.28 Islands P-17.29 to Certificate of Incorporation of - - Chevron Singapore pte Ltd P-17.29.1 Change of Name - Chevron South Africa (pty) Certificate of Amendment of - - Limited P-17.30 Certificate of Formation - Memorandum and Articles of - - Chevron (Thailand) Limited P-16.47 P-17.31, Association - Chevron Thailand Exploration P-16.48 P-17.46 Certificate of Change of Name of - - and Production Ltd Company P-16.49 P-17.32 Certificate of Change of Name - - Chevron (Tianjin) Lubricants and Incorporation, Letter - Co. Ltd P-17.33 Certification issued by the - Registrar of Foreign Business - Operation - Commercial Registration Certificate - Certificate of Approval for Establishment of Enterprises with Foreign Investment in the People's Republic of China Certificate Confirming Incorporation with Memorandum and Articles of Association Chevron Trading pte Ltd P-16.50 P-17.34 Domicile Information Letter PT Chevron Oil Products P-16.56 P-17.36 to Indonesia P-16.7 P-17.36.1 Articles of Association P-16.59 P-17.3 to Certificate of Incorporation Chevron Asia South Ltd P-16.10 P-17.3.1 Certificate of Incorporation on P-16.12 Change of Name UECSL - Chuandongbei Branch P-16.5 P-17.37 Articles of Incorporation Chevron Bangladesh Blk P-16.52 Thirteen/_Fourteen P-17.5 P-17.6 Chevron (Cambodia) Limited Chevron Asia Pacific Holdings P-17.2 Certificate of Continuance Branch P-17.42 Certificate of Registration of Chevron USA Inc. (Singapore Foreign Company Branch)

DECISION CfA CASE NO. 9021 Accordingly, out of the P3,094,815,091.9868 zero-rated sales declared per petitioner's Quarterly VAT Returns for the four quarters of CY 2013, only the amount of P720,308,940.84, broken down below, qualifies for VAT zero-rating under Section 108(8)(2) of the NIRC of 1997, as amended: O.R. Amount in Exhibit No. O.R. Date Client USD Amount in PHP P-31 FIRST QUARTER OF CY 2013 (Exhibit P-53.1) 3648 24-Jan-13 Chevron Marine Products LLC - Int'l 15,126.91 613 667.75 _p(lge 3 340,262.73 13 809 364.04 page 6 3651 25-Jan-13 Chevron International Pte Ltd 286,837.61 11 641136.77 page 7 235 758.37 page 8 3652 25-Jan-13 Chevron New Zealand 138 909.01 9 568 115.67 118,740.21 5 637 540.99 _p~e9 3653 25-Jan-13 Chevron Corporation 103,457.05 4 819 002.03 4 198 743.91 page 10 3654 25-Jan-13 Chevron Singapore Pte Ltd 24,649.33 1 000 378.65 page 11 7,050.21 page 12 3655 25-Jan-13 Chevron North Sea Limited 286 128.65 page 13 62,704.77 2 544 836.44 page 15 3656 25-Jan-13 Chevron USA Inc. (Singapore Branch) 8 513.83 page 16 3,662.30 345 388.64 Qage 18 3657 25-Jan-13 Chevron (Cambodia) Limited 148 813.49 page 21 333,822.81 13 553 504.26 page 22 3658 25-Jan-13 Chevron Neftegaz Inc. 257,510.50 10 455 156.31 page 24 203]52.28 8 272 524.56 page 25 3660 25-Jan-13 Chevron Asia Pacific Holdings Branch 176,462.51 7 164 535.53 page 26 166 560.98 6 762 524.56 page 27 3661 28-Jan-13 Chevron Oronite Pte Ltd 132 221.37 5 368 305.72 .Qa_ge 28 106,403.98 4 320 096.63 page 30 3663 20-Feb-13 Chevron Marine Products LLC - Int'l 819 160.37 page 31 20,175.92 423 900.93 Qa_ge 34 3666 22-Feb-13 Chevron Corporation 10 440.68 4 424 159.33 page 35 108,568.87 page 37 3667 22-Feb-13 Chevron International Pte Ltd 51 324.64 .Qa_ge 39 1 260.02 148,692.65 page 40 3669 22-Feb-13 Chevron New Zealand 3,662.30 13 843 060.36 page 41 339,431.84 8 301,363.38 page 43 3670 22-Feb-13 Chevron (Thailand) Limited 203 549.43 7 997,534.67 page 44 196 099.55 5 371 345.02 page 45 3671 22-Feb-13 Chevron Hong Kong Limited 131 705.38 4 704 656.20 115 358.17 425,802.61 3672 22-Feb-13 Chevron USA Inc. (Singapore Branch) 10 440.68 3673 22-Feb-13 Chevron North Sea Limited 3675 22-Feb-13 Chevron (Cambodia) Limited 3676 22-Feb-13 Chevron Neftegaz Inc. 3679 25-Feb-13 Chevron Malaysia Limited 3680 26-Feb-13 Chevron Oronite pte Ltd 3682 21-Mar-13 Chevron Marine Products LLC- Int'l 3684 25-Mar-13 Chevron Corporation 3685 25-Mar-13 Chevron New Zealand 3686 25-Mar-13 Chevron South Africa (Ptv) Limited 3688 25-Mar-13 Chevron USA Inc. (Singapore Branch) 3689 25-Mar-13 Chevron North Sea Limited 3690 25-Mar-13 Chevron Neftegaz Inc. 68 CY 2013 Zero-Rated 5ales 1st Quarter p 681 627 197.74 Exhibit 2nd Quarter P-4.2 3rd Quarter 813J49 618.42 P-5.2 4th Quarter 794 096 726.70 P-6.2 805 341 549.12 P-7.2" Total p 3,094,815,091.98

DECISION CTA CASE NO. 9021 I I 3692 26-Mar-13 Chevron (Cambodia) Limited 23 466.81 958 220.09 page 47 Subtotal 157,978,984.85 SECOND QUARTER OF CY 2013 (Exhibit P-53.2) 3693 01-Apr-13 Chevron Lubricants Lanka PLC 11 643.12 475 423.44 page 48 1,309.72 53 479.79 page 49 3694 01-Apr-13 Chevron (Tianjin) Lubricants Co. Ltd 3 662.30 374.98 151 272.20 ~ge50 3695 18-Apr-13 Chevron Marine Products LLC - Int'l 15 488.64 58 888.53 page 51 3696 18-Apr-13 UECSL - Chuandong_bei Branch 203,549.46 2 418 420.12 page 53 330 225.62 8 397 254.95 _p~e 54 3698 23-Apr-13 Chevron International Limited 169 038.51 13L656 973.53 page 57 139 136.01 6,990,839.95 page 58 3699 24-Apr-13 Chevron New Zealand 133 911.63 5,754 177.42 page 59 113 434.33 5,538,115.38 paqe 60 3703 25-Apr-13 Chevron Corporation 104 441.24 4L691l246.07 page 61 103 502.79 4 319,323.41 page 62 3704 25-Apr-13 Chevron Hong Kong_ Limited 4,280,512.41 page 63 39 309.50 lL625L703.06 page 68 3705 25-Apr-13 Chevron International Pte Ltd 33 490.35 1,385,043.42 page 69 10 440.68 page 71 3706 25-Apr-13 Chevron USA Inc. (Singapore Branch) 431 789.91 _p~_e 72 7 552.34 312 338.30 page 73 3707 25-Apr-13 Chevron North Sea Limited 5 557.50 229 838.71 page 76 page 77 3708 25-Apr-13 Chevron Liberia Limited 407.05 16,834.16 _p~g_e 80 137.28 5 677.42 page 82 3709 25-Apr-13 Chevron Malaysia Limited 178 392.63 page 83 23 466.80 7 359L431.93 3714 25-Apr-13 Chevron South Africa _fP_!yl Limited 19 102.30 968 102.31 788 048.68 3715 25-Apr-13 Chevron Oronite Company LLC 10 266.03 4 564.54 3717 25-Apr-13 Chevron Neftegaz Inc. 50.18 3718 25-Apr-13 Chevron Trading Pte Ltd 10 054.78 4 989.51 3719 25-AQr-13 Chevron Marine Products LLC- Int'l 326 616.94 3723 25-Apr-13 PT Chevron Oil Products Indonesia 203 549.45 131 616.67 3724 25-Apr-13 Chevron Asia South Ltd 108 576.77 3727 26-Apr-13 Chevron (Thailand) Limited 23 466.81 1 540.00 3729 26-Apr-13 Chevron(Cambodia) Limited 4 989.50 3730 26-Apr-13 Chevron Products UK Limited 111109.17 10 440.37 Chevron Overseas Services 4 989.51 423,516.09 page 84 3731 26-A!21"-13 Corp_oration 37 892.57 188 306.11 page 85 page 86 3732 26-Apr-13 Chevron Oronite Pte Ltd 336 283.19 2,070.13 203 549.45 3733 26-Apr-13 Chevron Shipping Company LLC 178 392.63 414,459.19 page 89 3736 29-Apr-13 Chevron Bangladesh Blk 169 038.53 205,668.18 page 91 Thirteen/Fourteen 145 388.03 13 479,857.20 paqe 95 1441822.00 8L400l720.18 page 97 3738 30-Apr-13 Chevron Lubricants Lanka PLC 5,474,903.08 page 98 4,516 504.58 page 99 3742 24-May-13 Chevron Corporation 976/156.82 page 100 page 101 3745 24-May-13 Chevron New Zealand 64 059.90 page 102 209 028.07 _page 103 3746 28-May-13 Chevron USA Inc. (Singapore Branch) 4L585L603.38 page 104 430,898.89 page 107 3747 28-May-13 Chevron International Pte Ltd 218 742.22 paqe 110 1 656,867.95 page 112 3748 28-Ma_y-13 Chevron_{Cambodiaj Limited 14 742,796.58 page 113 8,923 693.56 _page 114 3749 28-May-13 Chevron Oronite Pte Ltd 7 L820L807,98 page 115 7,410 720.30 page 116 3750 30-May-13 Chevron Lubricants Lanka PLC 6,373 872.42 _page 117 6L349 057.43 3751 24-May-13 Chevron North Sea Limited 3752 24-May-13 Chevron Neftegaz Inc. 3755 26-Jun-13 Chevron Lubricants Lanka PLC 3759 24-Jun-13 Chevron Pakistan Limited 3761 25-Jun-13 Chevron Corporation 3762 25-Jun-13 Chevron New Zealand 3763 25-Jun-13 Chevron (Thailand) Limited 3764 25-Jun-13 Chevron Hong Kong Limited 3765 25-Jun-13 Chevron Singapore Pte Ltd 3766 25-Jun-13 Chevron International Pte Ltd

DECISION CTA CASE NO. 9021 3767 25-Jun-13 Chevron USA Inc._(Sii}Qapore Branch) 131,482.06 5 764,228.85 page 118 3768 25-Jun-13 Chevron North Sea Limited 119 266.77 5 228 705.39 page 119 3769 25-Jun-13 Chevron Malaysia Limited 100 004.99 4 384 260.85 page 120 3771 25-Jun-13 Asia Pacific Marine Services fEF)_ B.V. page 122 3772 25-Jun-13 Chevron Neftegaz Inc. 12,618.66 553 206.93 page 123 3774 26-Jun-13 Chevron (Cambodia) Limited 10,440.68 457 723.81 page 125 3776 26-Jun-13 Chevron Oronite pte Ltd 23,466.83 1028 795.70 page 127 159 707.58 Subtotal 3J642.93 180,310,274.56 THIRD QUARTER OF CY 2013 (Exhibit P-53.3) 164 946.38 7 131 274.54 Qa_ge 129 10 440.68 451 001.30 page 132 5003 23-Jul-13 Chevron (China) Investment Co Ltd 23,466.81 page 133 5006 25-Jul-13 Chevron Neftegaz Inc. 1 013 685.10 page 135 5007 25-Jul-13 Chevron Lubricants Lanka PLC 135,422.41 5 849 780.13 page 136 5009 25-Jul-13 Chevron International Pte Ltd 203,549.42 8 792 631.53 page 137 5010 25-Jul-13 Chevron New Zealand 342,921.51 14,813 024.19 page 140 5011 25-Jul-13 Chevron Corporation 108,612.46 4 691 682.94 Q_a_ge 141 5014 26-Jul-13 Chevron North Sea Limited 131,989.30 5 701 481.64 page 142 5015 26-Jul-13 Chevron USA Inc. (Singapore Branch) 105,252.21 4 552 431.23 page 143 5016 30-Jul-13 Chevron South Africa (Pty) Limited page 144 5017 31-Jul-13 Chevron Lubricants Lanka PLC 4 989.50 215 995.67 Qa_ge 147 5020 26-Jul-13 Chevron Oronite Pte Ltd 5,541.23 239 361.99 page 148 5023 23-Aug-13 Chevron Corporation 352_L497 .52 15 494 396.48 page 149 5025 23-Aug-13 Chevron New Zealand 203 549.47 8,947 229.45 page 150 5026 23-Aug-13 Chevron (Thailand) Limited 178,392.65 7 841 435.16 page 151 5027 23-Aug-13 Chevron Hong Kong Limited 169 038.51 7 430 264.18 page 152 5028 23-Aug-13 Chevron USA Inc. (Singapore Branch) 133,394.31 5,863 486.15 page 153 5029 23-Aug-13 Chevron North Sea Limited 106 271.83 4 671 289.23 page 154 5030 28-Aug-13 Chevron (Cambodia) Limited 23 466.81 1 037 436.34 page 157 5031 28-Aug-13 Chevron Lubricants Lanka PLC 4 989.51 220 579.58 page 158 5034 27-Aug-13 Chevron Neftegaz Inc. 10 440.68 461 364.56 Q_a_g_e 164 5035 27-Aug-13 Chevron Oronite Pte Ltd 2,127.32 page 166 5041 25-Sep-13 Chevron Corporation 286,730.03 94 004.42 page 167 5043 25-Se_p-13 Chevron Singapore Pte Ltd 239,633.20 12 401 817.91 page 169 5044 25-Sep-13 Chevron New Zealand 202,779.78 10,364 757.79 page 170 5046 25-Sep-13 Chevron Malaysia Limited 155,942.33 page 172 5047 25-Se_p-13 Chevron USA Inc. (Singapore Branch) 135 230.70 8 770 751.73 page 173 5049 25-Sep-13 Chevron Neftegaz Inc. 10 440.68 6 744 910.47 page 174 5051 25-Sep-13 Chevron International Pte Ltd 163 217.05 5 849 078.72 page 175 5052 25-Se_p-13 Chevron _(China] Investment Co Ltd 93 950.26 page 176 5053 26-Sep-13 Chevron North Sea Limited 106,271.83 451 586.51 Qa_ge 178 5054 26-Sep-13 Chevron Iraq (Sarta) Limited - Branch 105,636.37 7 059 560.99 page 179 5056 30-Sep-13 Chevron Lubricants Lanka PLC 4L063 592.56 5057 26-Sep-13 Chevron Oronite Pte Ltd ~989.50 4 612 492.62 4 584 911.89 Subtotal 16 609.87 216 089.22 FOURTH QUARTER OF CY 2013 (Exhibit P-53.4) 720 914.50 5058 18-0ct-13 Chevron International Limited 171,354,300.72 5060 22-0ct-13 Chevron (China) Investment Co Ltd 5063 25-0ct-13 PT Chevron Oil Products Indonesia 53,305.32 2 300 618.04 page 180 5064 25-0ct-13 Chevron Oronite Company LLC 26,842.93 1155 528.63 page 182 page 185 113.99 4 913.36 page 186 2 915.90 125 685.34

DECISION CfA CASE NO. 9021 Chevron Thailand Exploration and 6,147.96 264 998.28 page 187 5066 25-0ct-13 Production Ltd 10 440.68 450 029.31 page 188 21 973.80 947 146.55 page 190 5067 25-0ct-13 Chevron Neftegaz Inc. 26 592.31 1,146 220.26 page 191 46 933.62 2,023 000.86 page 195 5069 25-0ct-13 Chevron Marine Products LLC - Int'J 51 819.42 2 233 595.69 pa_ge 196 106 271.83 4L580L682.33 page 199 5070 25-0ct-13 Chevron Asia Pacific Holdings Branch 144 225.12 6,216 600.00 page 201 169 038.52 7,286 143.10 page 202 5074 25-0ct-13 Chevron (Cambodia) Limited 179 735.49 7J47L219.40 page 204 203 912.18 8 789,318.10 page 205 5075 25-0ct-13 Chevron Malaysia Limited 344 324.12 14,841 556.90 page 207 2CI_ge 210 5078 25-0ct-13 Chevron North Sea Limited 2 266.91 97 627.48 5080 25-0ct-13 Chevron USA Inc. (Singapore Branch) 5081 25-0ct-13 Chevron Hong Kong Limited 5083 25-0ct-13 Chevron (Thailand) Limited 5084 25-0ct-13 Chevron New Zealand 5087 25-0ct-13 Chevron Corporation 5090 29-0ct-13 Chevron Oronite Pte Ltd 3 567.83 153 653.32 page 211 5091 29-0ct-13 Chevron Bangladesh Blk 9 090.91 391 512.06 page 213 Thirteen/Fourteen 92 995.40 4L004L969,85 page 215 97 534.08 4,200,434.11 page 216 5093 29-0ct-13 Chevron Iraq (Sarta) Limited - Branch 4 989.51 214 510.33 page 218 195 804.15 8,439 834.04 Q_a_ge 219 5095 29-0ct-13 Chevron Liberia Limited 101 024.79 4 350,766.15 page 219 107 234.32 4,622,168.97 page 220 5096 29-0ct-13 Chevron South Africa (Pty) Limited 208 825.70 9 138,980.31 page 226 153 521.46 6 718,663.46 page 227 5099 30-0ct-13 Chevron Lubricants Lanka PLC 107 498.90 4,704,547.05 page 228 106 334.07 4 653,569.80 page 229 5100 25-0ct-13 Chevron International Pte Ltd 106 271.83 4,650 845.95 page 230 11 893.36 5201497.16 page 231 5100 29-0ct-13 Chevron Products UK Limited 10 440.68 456 922.54 page 232 65 902.66 2 884,142.67 page 233 5101 25-0ct-13 Chevron Singapore Pte Ltd 13 406.52 586L718,60 pa_ge 234 26 892.21 1 176,901.97 page 235 5108 25-Nov-13 Chevron New Zealand 4 989.50 218 358.86 page 236 3 484.03 152 473.96 page 237 5109 25-Nov-13 Chevron USA Inc. (Singapore Branch) 177 108.49 7 750,918.60 page 238 784 948.61 34 809,251.00 page 239 5110 25-Nov-13 Chevron (Thailand) Limited 155 051.95 6 875,917.96 page 240 125 222.71 5 553L113.08 pa_ge 241 5111 25-Nov-13 Chevron Singapore Pte Ltd 1 680.32 page 243 680 047.03 74,515.30 page 244 5112 25-Nov-13 Chevron North Sea Limited 601621.44 30 157,296.23 pa_ge 248 6 871.02 page 250 5113 25-Nov-13 Asia Pacific Marine Services (EF} B.V. 2 688L312.20 304,701.55 5114 25-Nov-13 Chevron Neftegaz Inc. 210,665,380.71 5115 29-Nov-13 Chevron Pakistan Limited 720,308,940.84 5116 29-Nov-13 Chevron _(China] Investment Co Ltd 5117 27-Nov-13 Chevron (Cambodia) Limited 5118 27-Nov-13 Chevron Lubricants Lanka PLC 5119 26-Nov-13 Chevron Oronite Pte Ltd 5120 25-Nov-13 Chevron International Pte Ltd 5123 20-Dec-13 Chevron International Pte Ltd 5125 20-Dec-13 Chevron New Zealand 5126 20-Dec-13 Chevron Hong Kong_ Limited 5128 26-Dec-13 Chevron Oronite Pte Ltd 5129 23-Dec-13 Chevron Corporation 5133 23-Dec-13 Chevron Ira~jSarta) Limited - Branch 5135 23-Dec-13 Chevron (China) Investment Co Ltd subtotal VALID ZERO-RATED SALES The rest of petitioner's declared zero-rated sales in the amount of P2,374,506,151.14 detailed below, shall be denied VAT zero-rating for petitioner's failure to prove that the entities to whom it rendered ?c--

DECISION CTA CASE NO. 9021 services are non-resident foreign corporations doing business outside the Philippines: O.R. O.R. Client Amount Amount in PHP Exhibit No. Date inUSD P-31 FIRST QUARTER OF CY 2013 (Exhibit P-53.1) 3646 17-Jan-13 Chevron Products Company 436 867.61 17,708 456.02 page 1 3647 23-Jan-13 Chevron Romania Exploration and 15 573.99 Production SRL 633,089.02 page 2 1 651117.48 3649 25-Jan-13 Chevron Services Company 1 601 218.60 67 009 637.99 page 4 3650 25-Jan-13 Chevron Information Technology Company 1 323.32 64,984,521.10 page 5 3659 23-Jan-13 CCEC - Shekou Shared Cost Center 99 819.08 53,793.50 page 14 Chevron Global Energy Inc. - Global 581 313.51 3660 25-Jan-13 Downstream Cost Allocation Branch 3 432 503.70 4,051,099.03 page 15 3662 20-Feb-13 1 552 556.32 23,621,028.44 page 17 Chevron Products Company 323 976.61 3664 22-Feb-13 Chevron Information Technology 139_1_362]16.20 page 19 Company 54 928.41 244 949.29 3665 22-Feb-13 Chevron Services Company 116 491.17 63,035 173.37 page 20 3668 22-Feb-13 Chevron Australia Pte Ltd - Other 577 860.40 13,185 861.21 page 23 3674 22-Feb-13 635 219.17 _p~g_e 29 3677 22-Feb-13 Chevron Energy Technology Company 2,230J 142.51 page 32 Chevron Australia pte Ltd- Gorgon 2 189.12 9,945 159.97 3678 25-Feb-13 CPUK - Trading and Marine Lubricants 1 559 539.05 3681 18-Mar-13 Branch 4,746 991.44 page 33 23,404,633.45 _pag_e 36 3683 25-Mar-13 Chevron Products Company Chevron Information Technology 25,906 165.17 page 38 Company 3687 22-Feb-13 Chevron Australia pte Ltd - Other 89 097.27 page 42 3691 26-Mar-13 Chevron Services Compan_y_ 63 680 647.20 page 46 523,_648,212.89 subtotal SECOND QUARTER OF CY 2013 (Exhibit P-53.2) 3697 16-Apr-13 Chevron Products CornQ_any 589 659.71 24 356 039.24 page 52 3700 25-Apr-13 Chevron Information Technology Company 2 535 492.48 104 859 076.92 paqe 55 3701 25-Apr-13 Chevron Services Company 1 680_1556.47 69 501 921.84 page 56 Chevron Global Energy Inc. -Global 3710 25-Apr-13 Downstream Cost Allocation Branch 82,157.55 3 397 748.14 page 64 3711 25-Apr-13 Chevron Upstream and Gas 81,737.96 3 380 395.37 page 65 3712 25-Apr-13 Chevron Energy Technology Company 75,899.40 3Jl38 933.00 page 66 3713 25-Apr-13 Chevron Canada Limited - Downstream 39,680.96 1641065.34 page 67 3716 25-Apr-13 Chevron NA Exploration Production Co 21 183.86 page 70 876 090.16 3,418.77 3720 25-Apr-13 BUT Chevron Indonesia Company 468.62 141 388.34 page 74 3722 25-AQr-13 Chevron Gas and Mistream 19 380.48 page 75 281,267.16 3725 26-Apr-13 Chevron Australia pty Ltd- Other 185 607.78 11 603 430.69 _p~g_e 78 7 657 086.63 page 79 3726 26-A_p_r-13 Chevron Australia !'tY. Ltd - Other

DECISION CTA CASE NO. 9021 3728 26-Apr-13 CPUK - Trading and Marine Lubricants 162 360.52 6 698L041.25 _p_(ille 81 3730 26-Apr-13 Branch 85.07 3 509.49 page 83 3734 29-Apr-13 page 87 3735 29-A):>r-13 CPUK Limited - BRES 37 210.10 1 533,804.62 page 88 25 758.42 1 061 765.05 3737 30-Apr-13 Refineria PanamaS. de R.L. 3739 16-May-13 75 059.48 3 093 960.43 page 90 Campania Chevron de Panama SA 589,707.95 24 237 893.55 page 92 3740 24-May-13 Chevron AI Khalij, a branch of Chevron Asia Pacific Holdings Limited 2,394,783.68 98 835 479.98 page 93 Chevron Products Company 1 674 478.82 Chevron Information Technology 292,301.81 Company 189J487.17 3741 24-May-13 Chevron Services Company 1,390,557.14 69 107 669.01 page 94 3743 24-May-13 Chevron Australia Pty Ltd - Other 573 826.92 12 063 632.27 page 96 3753 24-Jun-13 Chevron Australia Pty Ltd- Gorgon 233,759.98 _Qa_ge 105 Chevron Information Technology 8 285 403.15 3754 25-Jun-13 Company 1,611 702.17 3757 18-Jun-13 Chevron Products Com~any_ 93_L494.93 60 962 610.26 page 106 3758 24-Jun-13 Chevron Australia Pty Ltd - Other 24 564 508.56 page 108 162 360.52 10 221 249.67 _Qage 109 3760 25-Jun-13 Chevron Services Company 7 361.89 70 657 701.45 page 111 3770 25-Jun-13 Chevron Energy Technology Com~any_ 4 098 857.08 page 121 CPUK - Trading and Marine Lubricants 3773 26-Jun-13 Branch 7 117 953.53 page 124 3775 26-Jun-13 Refineria Texaco de Honduras S.A. 322 748.36 _Qage 126 633,439,343.86 Subtotal THIRD QUARTER OF CY 2013 (Exhibit P-53.3) 5002 17-Jul-13 Chevron Products Company 585_L_489.46 25 433 947.00 page 128 140,190.65 6 055 751.62 _page 130 5004 24-Jul-13 Chevron Australia Pty Ltd - Gorgon 234,540.20 page 131 10 131 326.13 5005 24-Jul-13 Chevron Australia Ptv Ltd - Other 79J666.18 5008 25-Jul-13 3 441 303.67 page 134 Chevron Global Energy Inc. - Global 1 631 674.38 Downstream Cost Allocation Branch 1,980 021.19 5012 25-Jul-13 Chevron Services Company 70 482,694.60 page 138 5013 25-Jul-13 Chevron Information Technology 2 880 587.61 5021 23-Aug-13 Company 85 530 073.00 _pa_ge 139 Chevron Information Technology 1,661 517.17 Company 290 946.70 126 619,235.60 page 145 5022 23-Aug-13 Chevron Services Company 162 360.52 73,033,721.76 page 146 5032 27-AIJQ_-13 12 856,681.40 page 155 Chevron Australia Pty Ltd - Other 15 086.96 5033 27-Aug-13 CPUK - Trading and Marine Lubricants 600 232.61 7 174,570.04 page 156 Branch 597 635.28 5036 13-Aug_-13 Chevron Polska Energy Resoources Sp. 655,668.41 page 159 5037 16-Aug-13 z.o.o. 1 607 341.93 26 256,894.58 page 160 5038 18-Sep-13 25 995,444.98 page 161 Chevron Products Company 1 324 814.03 242 532.45 Chevron Products Company 166 140.21 105 473.88 5039 25-Sep-13 Chevron Services Com~any 69,521,709.78 page 162 Chevron Information Technology 5040 25-Sep-13 Company 57,301 644.90 page 163 5042 25-Sep-13 Chevron Australia Pty Ltd - Other 10,490 157.87 page 165 5045 25-Sep-13 Chevron Energy Technology Company page 168 5048 25-SeQ-13 7,185 995.24 page 171 Chevron Upstream 4,562 019.03

DECISION CTA CASE NO. 9021 sossl I 26-Sep-13 CCEC - Shekou Shared Cost Center 313.03 13,586.37 page 177 Subtotal 622,742,425.98 FOURTH QUARTER OF CY 2013 {Exhibit P-53.4) 5059 16-0ct-13 Chevron Products Company 586 777.20 25 303,027.17 page 181 5061 25-0ct-13 Chevron China Energy Company - Expl & Prod Services 9.53 410.78 page 183 97.31 4J94.40 _page 184 5062 25-0ct-13 Chevron Gas and Mistream 15 546.79 670,120.26 page 189 5068 25-0ct-13 Chevron Upstream and Gas 36 027.09 1,552 891.81 page 192 5071 25-0ct-13 Chevron Global Energy Inc. - Global 44 654.13 1 924r746.98 page 193 Downstream Cost Allocation Branch 45 153.39 1 946,266.81 page 194 54 913.56 2 366,959.48 page 197 5072 25-0ct-13 Chevron Canada Limited - Downstream 5073 25-0ct-13 Chevron Energy Technology Company 5076 25-0ct-13 Chevron NA Exploration Production Co 78 473.31 3 382,470.26 page 198 5077 25-0ct-13 Chevron AI Khalij, a branch of Chevron 5079 25-0ct-13 Asia Pacific Holdings Limited 116 858.31 5,036 996.12 page 200 Chevron Business and Real Estate 175 891.35 Services (a Chevron USA Inc. Division) 7 581L523.71 page 203 5082 25-0ct-13 Chevron Global Downstream 5085 25-0ct-13 Chevron Australia Pty Ltd - Other 246 852.00 10 640,172.41 page 206 5088 25-0ct-13 Chevron Services Comp_any 1J626,327.57 70 100 326.29 page 208 5089 25-0ct-13 Chevron Information Technology Company 3 573 908.44 154 047,777.59 page 209 5092 29-0ct-13 Refineria Texaco de Honduras S.A. 5 889.48 253,638.24 page 212 25 761.29 1 109,444.01 page 214 5094 29-0ct-13 Refineria Panama S. de R.L. 5097 29-0ct-13 CPUK - Trading and Marine Lubricants 163 171.81 7L027L209 �73 j)a_ge 217 Branch 63 981.38 2 757,818.10 page 221 11,494,754.31 page 222 5102 25-0ct-13 Chevron Australia Pty Ltd- Gorgon 266 678.30 28 184 212.54 page 223 647 109.52 5103 25-0ct-13 Chevron Australia Pty Ltd - Gorgon 5104 18-Nov-13 Chevron Products Company 2 990 233.01 130 863,589.06 page 224 5105 25-Nov-13 Chevron Information Technology 1 604 755.97 70 230,020.57 page 225 Company 26 297J53.44 593 014.34 18,105,329.49 page 242 5106 25-Nov-13 Chevron Services Company 408 275.18 page 245 5127 17-Dec-13 Chevron Products ComQany 5130 23-Dec-13 Chevron Services Company 186 785.22 8 283,158.31 page 246 5131 23-Dec-13 CPUK - Trading and Marine Lubricants 115 717.80 5 131,609.76 page 247 Branch 5132 23-Dec-13 Chevron Energy Technology Company 8 563.29 379,746.78 page 249 5134 23-Dec-13 Chevron Polska Energy Resoources Sp. z.o.o. Subtotal 594L676J168.41 TOTAL INVALID ZERO-RATED SALES 2,374,506,151.14 Petitioner incurred/paid input taxes attributable to zero- rated sales and said input taxes were not appliedagainst tz- any output VAT liability

DECISION CTA CASE NO. 9021 Having resolved that petitioner had valid VAT zero-rated sales for the four quarters of CY 2013 in the amount of P720,308,940.84, the Court will now proceed to determine whether petitioner incurred input taxes in connection therewith and if said input taxes were not applied against any output VAT liability of petitioner. In its amended Quarterly VAT Returns for the four quarters of CY 2013, petitioner reflected a total amount of P105,758,241.10 allowable input VAT arising from its amortization of input VAT on purchases of capital goods exceeding P1 million, domestic purchases of capital goods not exceeding P1 million, domestic purchases and importation of goods other than capital goods, domestic purchases of services and services rendered by non-residents, detailed as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 (Exhibit ''P- (Exhibit ''P-5.2'') (Exhibit ''P-6.2") (Exhibit ''P-7.2'') 4.2'') Amounts in Philippine Pesos Input Tax Deferred on 44 187 976.62 41 434 854.56 38 785 356.55 36 643 819.37 44 187 976.62 Capital Goods exceeding 597 310.78 P1Million from Previous 620,327.97 1,171 221.01 - 2 388 859.76 Quarter 44 785 287.40 Add: Input Tax on Capital 42 055 182.53 39 956 577.56 36 643 819.37 46 576 836.38 Goods exceeding P1Million 41,434 854.58 Purchased this _Q_uarter 3 350 432.82 38 785,356.56 36 643 819.37 33 331 281.98 33,331 281.98 Total Unamortized Input Tax on Capital Goods - 3 269 825.97 3 312,758.19 3 312 537.39 13 245 554.40 exceeding P1Million Less: Input Tax on 345 249.00 118,982.14 - - 118 982.14 Purchases of Capital Goods 44 574.00 exceeding P1Million 637 714.95 4 523 017.33 1 790 908.34 7 296 889.62 deferred for the 16 008 379.28 succeeding _period 2 217 629.99 106 149.00 26~966.00 20_L_691.00 436 380.00 Amortization of Input Tax 20 078 049.55 on Capital Goods 2~9661265.09 17 998 379.35 21 472 837.42 75 557 645.60 exceeding P1Million 2 079_L020.67 2 35~945.47 26,289,742.28 2 450 193.21 9 102 789.34 Add: Input Tax on: 28,455,066.34 Purchases of Capital 29,047 167.36 105,758,241.10 Goods not exceeding P1Million Domestic Purchases of Goods Other than Capital Goods Importation of Goods Other than Capital Goods Domestic Purchase of Services Services Rendered by Non-Residents Total Allowable Input Tax

DECISION CTA CASE NO. 9021 Out of the P105,758,241.10 input VAT, petitioner is claiming refund of the amount of P101,103,433.99 allegedly representing input VAT attributable to its zero-rated sales for the CY 2013. In support of its input VAT claim, petitioner presented various summary lists69 and schedules70, and the corresponding invoices, official receipts, import documents, BIR Forms No. 1600 and other documents71, which were all examined by the Court-commissioned Independent CPA. A review of the ICPA report together with the documents supporting the P92,512,686.7072 input VAT claim on purchases of capital goods not exceeding P1Million, domestic purchases and importation of goods other than capital goods, domestic purchases of services and services rendered by non-residents shows that input taxes amounting to P6,762,383.27 should be disallowed for not being properly substantiated VAT invoices or official receipts as prescribed under Sections 110(A) and 113(A) and (B) and 237 and 238 of the NIRC of 1997, as amended, in relation to Sections 4.110-1, 4.110-8 and 4.113-1 of RR No. 16-05, as amended, to wit: Finding_s 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total p 9 120.00 DOMESTIC PURCHASES OF GOODS - a. Supported by original copies of VAT OR (Annex 8-6 ofthe /CPA Re{)Ort) - - p 9 120.00 69 Exhibits "P-35.1" to "P-35.4" (Summary List of Purchases), Exhibits "P-36.1" to "P-36.4" (Summary List ofImportations). 70 Exhibits "P-37.1" to "P-37.4" (Schedule ofDomestic Purchase of Goods), Exhibits "P-38.1" to "P- 38.4" (Schedule of Domestic Purchases of Services and Services Rendered to Non-Residents), Exhibits "P-39-1" to "P-39.4" (Schedule ofcapital Goods), Exhibits "P-40.1" to "P-40.4" (Schedule of Importation of Goods), and Exhibit "P-45" (Schedule of Input Tax on Purchases from Prior Quarters). 71 Exhibits "P-41" and "P-42". 72 Purchase of Capital Goods 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total not exceeding P1Million 118,982.14 118,982.14 Domestic Purchases of 345,249.00 4,523,017.33 1,790,908.34 Goods other than Capital 44,574.00 637,714.95 264,966.00 20,691.00 7,296,889.62 Goods 16,008,379.28 106,149.00 436,380.00 Importation of Goods 2,217,629.99 20,078,049.55 17,998,379.35 21,472,837.42 other than Capital Goods 18,615,832.27 2,079,020.67 2,355,945.47 2,450,193.21 75,557,645.60 Domestic Purchases of 23,019,916.31 9,102,789.34 Services 25,142,308.15 25,734,629.97 Services rendered by non- fo- 92,512,686.70 residents Total

DECISION CTA CASE NO. 9021 b. Supported by original copies of sales invoice dated outside C( 2013 - (Annex 8-7 ofthe !CPA Report) p 50 004.09 - - 50 004.09 Subtotal p 50,004,.09 - p 9.120.00 - p 591124.09 DOMESTIC PURCHASE OF SERVICES a. Domestic purchase of services supported by original copies of VAT ORs where the amount of Input VAT was not indicated (Annex C-15 of the !CPA Report) p 4 582.49 p 47 382.89 p 1 380.00 p 11 612.06 p 64 957.44 b. Domestic purchase of services supported by original copies of VAT ORs where the amount of Input VAT was not indicated and where actual payment was not indicated in words 3 535.59 - 2 754.42 1 254.08 7 544.09 (Annex C-16 ofthe !CPA Report) c. Domestic purchase of services supported by Certified True Copy of VAT OR dated outside Calendar Year 2013 - - - (Annex C-17 ofthe !CPA Report} 3 209 210.13 3 209 210.13 d. Domestic purchase of services supported by original copies of VAT ORs where company TIN and address were not indicated and where the amount of Input VAT was not indicated - - _f_Annex C-18 ofthe !CPA ReJ)()rt) - 696.41 696.41 e. Domestic purchase of services supported by original copies of VAT ORs where company TIN and Input VAT were not indicated 1 351.07 - 2 175.00 - 3 526.07 (Annex C-19 ofthe !CPA ReJ)()rt) 4 281.44 38.57 9 000.00 f. Domestic purchase of services - supported by original copies of VAT ORs with incorrect company TIN (Annex C-20 of the !CPA Report) - - 4 242.87 g. Domestic purchase of services supported by original copies of Non- VATORs - - _(_Annex C-21 ofthe !CPA Report) 9 000.00 h. Domestic purchase of services supported by original copies of Non- VAT ORs and with incorrect company TIN - - - (Annex C-22 ofthe !CPA ReJ)()rt) 5 399.64 5 399.64 i. Domestic purchase of services supported by original copies of VAT ORs stamped with "Not Valid Source of Input VAT" 16 887.85 - 12,833.32 44 492.25 74 213.42 (Annex C-23 ofthe !CPA Report) j. Domestic purchase of services supported by original copies of VAT ORs stamped with "Not Valid Source of Input VAT" and where the amount of Input VAT was not indicated - - (Annex C-24 ofthe !CPA ReJ)()rt) 2 742.88 1 584.00 4 326.88 k. Domestic purchase of services supported by original copies of VAT ORs dated outside the quarter of claim but within the period of claim and with invalid ATP (Annex C-25 ofthe !CPA Report) - - - 4 800.00 4 800.00

DECISION CfA CASE NO. 9021 I. Domestic purchase of service - - - 1128.21 1128.21 supported by original copies of VAT - ORs stamped with "Not Valid Source 330 165.25 - - 330 165.25 of Input VAT' and where amount - per OR differs from amount per 53 750.41 - - 53 750.41 Schedule - (Annex C-26 ofthe !CPA ReiJOrt) 210 665.38 - - 210 665.38 m. Domestic purchase of services - supported by original copies of VAT 268.96 - - 268.96 ORs dated outside the Calendar - Year 2013 - - 4 572.44 4 572.44 (Annex C-27 ofthe !CPA Report) - n. Domestic purchase of services - 46 187.82 427 029.48 473 217.30 supported by original copies of VAT - ORs dated outside Calendar Year - - 21492.00 21492.00 2013 and where actual payment - was not indicated in words 3_L840.00 - - 3 840.00 (Annex C-28 ofthe !CPA Report) 21,510.00 - o. Domestic purchase of services 5791_885.78 - - 21 510.00 supported by original copies of VAT 75 136.58 ORs dated outside Calendar Year P4 452,795.43 130 689.99 853 619.22 1 639 331.57 2013 and where the amount of P123,215.88 Input VAT was not indicated P200 263.42 P1L371J622.31 P61 147,897.04 (Annex C-29 ofthe !CPA ReiJOrt) p. Domestic purchase of services supported by original copies of VAT ORs dated outside Calendar Year 2013 and where the amount per OR differs from amount per Schedule (Annex C-30 ofthe !CPA ReiJOrt) q. Domestic purchase of services supported by original copies of VAT ORs dated outside Calendar Year 2013 and stamped with "Not Valid Source of Input VAT" (Annex C-31 ofthe !CPA Report) r. Domestic purchase of services supported by original copies of VAT ORs with invalid ATP (Annex C-32 ofthe !CPA Report) s. Domestic purchase of services supported by original copies of VAT ORs with invalid ATP and where amount per OR differs from amount per Schedule (Annex C-33 ofthe !CPA Report) t. Domestic purchase of services supported by original copies of VAT ORs under the name of the employee instead of the company and where Input VAT and TIN were not indicated (_Annex C-34 ofthe !CPA RepQrt) u. Domestic purchase of services not supported by original copies of VAT ORs (not part of 2013) (Annex C-35 ofthe !CPA ReiJOrt) v. Domestic purchase of services without supporting documents (~nnex C-36 ofthe !CPA Repo_rt) Subtotal IMPORTATION OF GOODS a. Importation of goods supported p by Import Entry and Internal p 4 752.00 - - - 4 752.00

DECISION CTA CASE NO. 9021 Revenue Declarations (IEIRD) dated 39,822.00 P48 779.00 - - 39,822.00 outside CY 2013 - 481779.00 (Annex E-3 ofthe /CPA Report) - - - 48,565.00 b. Importation of goods supported - P48,565.00 - 54,147.00 by IEIRD but without proof of VAT - 54,147.00 57 344.00 payment - 57,344.00 - 32 771.00 - 32J771.00 20 691.00 Annex E-1 ofthe !CPA - - Report - - 26 432.00 - - - 10 693.00 OC Tanner - 20 245.00 Dexa Systems - p 20,691.00 41 591.00 OCTanner - 30 548.00 OC Tanner 26,432.00 - p 20,691.00 Dexa Systems p 436,380.00 Dexa Systems 10,693.00 41,591.00 OC Tanner 30,548.00 Annex E-2 of the !CPA 20,245.00 Report P264~66.00 OC Tanner - OC Tanner GilbarcoL Inc. - OC Tanner OC Tanner p 44 574.00 P106149.00 Subtotal DOMESTIC PURCHASES OF CAPITAL GOODS a. Supported by original copies of sales invoice dated outside CY 2013 (Annex F-6 ofthe /CPA Report} - p 118 982.14 - - p 118 982.14 p 118_~982.14 Subtotal - P118,982.14 - - P348,347 .02 P6,762,383.27 TOTAL P4,547,373.52 P474 349.42 P1,392,313.31 In addition, the Court finds that the following amounts of input VAT claimed by petitioner were higher than the amounts reflected in the official receipts, thus, the difference of P62,544.24 should likewise be disallowed: Input VAT OR Input VAT per Official Sup~lier No. OR Date _per Schedule Receipt Difference Exhibit P-41 Domestic purchase ofservices supported by original copies of VAT ORs dated outside the quarter of daim but within the period ofclaim and where amount per OR differs from amount per schedule (Annex C-6 of the !CPA Repg_rt)_ Fourth Quarter of CY 2013 MYND International 1148 23-Aug-13 43 686.68 43 486.68 200.00 Folder 14 page 3 Ltd. 1161 09-Sep-13 90 715.10 65,652.71 25,062.39 Folder 14 page 4 MYND International Ltd. RCBC Realty 37866 13-Sep-13 407 592.63 404 259.99 3,332.64 Folder 14, page 5 Corporation subtotal 541,994.41 513,399.38 28,595.03

DECISION CfA CASE NO. 9021 Domestic purchase ofse!Vices supported by original copies of VAT ORs where amount per OR differs from amount per schedule (Annex C-9 ofthe !CPA ReJ)Ort) First Quarter of CY 2013 Everything Express, Inc. 43286 09-Jan-13 2,880.37 868.55 2 011.82 Folder 17 page 4 08-Jan-13 38 534.97 38 138.22 396.75 Folder 17 page 5 Global Business Sup_port Services Inc. 13697 Misnet Education Inc. 11609 25-Jan-13 3 803.57 3 530.57 273.00 Folder 17 page 10 North Park Noodle 48708 23-Jan-13 5 731.39 5 629.05 102.34 Folder 17 page 11 House, Inc. 48709 23-Jan-13 North Park Noodle 549.11 539.30 9.81 Folder 17, page 12 House, Inc. Second Quarter of CY 2013 Money Doctors Inc. 28 17-Apr-13 7 452.00 7 228.44 223.56 Folder 17 page 22 3003 18-Sep-13 9 363.29 Third Quarter of CY 5 363.29 4 000.00 Folder 17, page 26 2013 Benchmark Par Excellence Tours and Transport Inc. Catena Security, Inc. 10800 03-Jul-13 9 772.42 9 749.96 22.46 Folder 17 page 27 03-Jul-13 372 189.08 371237.79 951.29 Folder 171 pa_ge 29 RCBC Realty 36217 Corporation 23-0ct-13 44.67 Folder 17, page 30 Fourth Quarter of CY 2013 Benchmark Par 3017 9 472.45 9 427.78 Excellence Tours and Transport Inc. Ilustrado Restaurant 20218 16-0ct-13 574.81 223.39 351.42 Folder 17, page 32 Platon Martinez Flores 37776 06-Nov-13 375.00 285.00 90.00 Folder 17, page 34 San 38220 09-0ct-13 5 111.75 5 052.06 59.69 Folder 17 page 35 RCBC Realty 38740 07-Nov-13 399 532.24 388 635.90 Corporation 39250 04-Dec-13 1494 386.29 1479 870.23 10 896.34 Folder 171 page 36 RCBC Realty 14 516.06 Folder 17 page 37 Corporation RCBC Realty Corporation subtotal 2,359,728.74 2t_325,779.53 33,949.21 Total 2,901,723.15 2,839,178.91 621544.24 Hence, out of the P92,512,686.70 input VAT claim on purchases of capital goods not exceeding PlMillion, domestic purchases and importation of goods other than capital goods, domestic purchases of services and services rendered by non-residents, only the amount of P85,687,759.19 represents petitioner's valid input VAT, computed as follows: Input VAT per VAT Returns 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 Purchase of Capital Goods 345 249.00 Amounts in Philippine Pesos 118,982.14 not exceeding P1Milfion Domestic Purchases of 118,982.14 7 296 889.62 Goods other than Capital Goods 637 714.95 4 523 017.33 1 790,908.34

DECISION CfA CASE NO. 9021 Importation of Goods other 44 574.00 106 149.00 264 966.00 20 691.00 436 380.00 than Capital Goods 16 008 379.28 20,078 049.55 17,998 379.35 21 472 837.42 75,557 645.60 Domestic Purchases of 9 102 789. 34 Services 2 217 629.99 2 079 020.67 2 355 945.47 2 450 193.21 92,512,686.70 Services rendered by non- 18,615,832.27 23L019,916.31 25,142,308.15 25,734,629.97 residents 6 762 383.27 4 547 373.52 348 347.02 474 349.42 1 392 313.31 62,544.24 Total 2,793.72 223.56 4,973.75 54,553.21 6,824,927.51 Less: Disallowances 4 550167.24 348,570.58 479,323.17 1,446,866.52 85_L687_L759.19 Not properly substantiated 1~0651665.03 22L671 345.73 2~66~984.98 24L287J63.45 by VAT invoices or receipts Excess of petitioner's claim over the input VAT shown in the supporting official receipts Total Disallowances Properly Substantiated Input VAT Claim on Purchases of Capital Goods not exceeding P1M, Domestic Purchases and Importation of Goods Other than Capital Goods, Domestic Purchases of Services and Services Rendered ~ Non-residents The Court will now proceed to determine the substantiation of the P13,245,554.40 amortization of input VAT on capital goods purchases exceeding PlMillion which originated from the P44,187,976.62 input tax deferred on capital goods exceeding PlMillion from previous quarter and P2,388,859.76 input VAT from purchases during the four quarters of CY 2013, as shown below: 1st_Q_uarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 (Exhibit ''P- (Exhibit ''P- (Exhibit ''P- (Exhibit ''P- 4.2"2_ 5.2"1_ 6.2") 7.2") Amounts in PhiliJ!pjne Pesos Input Tax Deferred on Capital Goods 44 187 976.62 41 434 854.56 38 785 356.55 36 643 819.37 44 187 976.62 exceeding P1Million from Previous Quarter 597 310.78 620 327.97 1171 221.01 - 2 388,859.76 Add: Input Tax on Capital Goods 46 576 836.38 exceeding P1Million Purchased this 44 785 287.40 42 055 182.53 39 956 577.56 36 643 819.37 Quarter Total Unamortized Input Tax on 41 434 854.58 38 785 356.56 36 643,819.37 33_L_331 281.98 33 331 281.98 Capital Goods exceeding P1Million Less: Input Tax on Purchases of 3,350,432.82 3,269,825.97 3,312,758.19 3,312,537.39 13,245,554.40 Capital Goods exceeding P1Million deferred for the succeeding R_eriod Amortization of Input Tax on Capital Goods exceeding P1Million The Court noted that petitioner failed to present the VAT invoices/official receipts in support of the P44,187,976.62 input tax deferred on capital goods exceeding PlMillion from previous quarter. 7e--

DECISION CfA CASE NO. 9021 Hence, any claimed amortization of input tax related to the said amount shall be denied. While petitioner was able to substantiate the amount of P2,388,859.76 input VAT related to its current purchases of capital goods exceeding P1Million, the same is not entirely creditable for the subject period of claim. Pursuant to Section 110(A)(2) of the NIRC of 1997, as amended, input VAT claim on capital goods purchases attributable to zero-rated sales may be claimed either in full during the month of acquisition, or spread over a period of time, depending on the aggregate acquisition cost of the capital goods in the calendar month. If the aggregate acquisition cost exceeds P1Million, the claim for input tax should be spread over 60 months or the estimated useful life of the capital goods, whichever is shorter. On the other hand, if aggregate acquisition cost does not exceed P1 million, the total input taxes shall be allowed as credit/refund in the month of acquisition. Applying the provisions of Section 110(A)(2) to the present case, out of the P2,388,859.76 input VAT on current purchases of capital goods exceeding P1Million, only the amount of P336,765.02 is creditable for the four quarters of CY 2013, computed as follows: Supplier Month Input VAT Monthly Input Annex F-1 of the !CPA Report Acquired Tax Credit73 Integrated Computer Systems Inc. April p 43,483.93 p 724.73 Integrated Computer Systems Inc. May 304,387.50 5,073.13 To'{ota Bicutan Paranaque Ma_y_ 191,250.00 3 187.50 Integrated Computer Systems Inc. July 38,552.68 Annex F-2 of the !CPA Report 642.54 Microdata System and Management Inc. Microdata System and Management Inc. January_ 133,250.76 2,220.85 Microdata System and Management Inc. January 312,685.30 5,211.42 Annex F-3 of the !CPA Report January 151,374.72 2 522.91 Dimension Data Philippines Inc. Integrated Computer Systems Inc. June 454L760.37 7_1579.34 Integrated Computer ~y_stems Inc. June 517,660.71 8,627.68 Annex F-4 of the !CPA Report June 1,253.57 75,214.29 73 Based on a 60-monthly amortization as indicated in Exhibit "P-43".

DECISION Mqy 59,757.86 995.96 CTA CASE NO. 9021 1 417.22 Page 42 of 45 July 85,032.96 357.48 JLGT Marketing July 21 448.68 Project Solution Group Asia Phils. Inc. Annex F-5 ofthe !CPA Report P2,388,859.76 Project Solution Group Asia Phils. Inc. Total Su_p~ier 1st Quarter Allowable Input Tax CY 2013 2nd Quarter 3rd Quarter 4th Quarter Annex F-1 ofthe !CPA Report - - p 2 174.20 p 2 174.20 p 2,174.20 p 6 522.59 Intergrated Computer Systems Inc. - 10 146.25 15 219.38 - 6,375.00 9 562.50 15 219.38 40 585.00 Intergrated Computer Systems Inc. p 6 662.54 - 1927.63 9,562.50 25,500.00 Toyota Bicutan Paranaque 15 634.27 7 568.74 1827.63 3 855.27 Intergrated Computer Systems Inc. - 6 662.54 6 662.54 6 662.54 26 650.15 Annex F-2 ofthe !CPA Report 15,634.27 15 634.27 15 634.27 62 537.06 Mircrodata System and Management - 30 274.94 Inc. - 7,568.74 7 568.74 7 568.74 Mircrodata System and Management 53 055.38 Inc. - 7 579.34 22 738.02 22,738.02 60 393.75 Mircrodata System and Management - 8,627.68 25 883.04 25 883.04 Inc. 1,253.57 8,775.00 - 3 760.71 3 760.71 Annex F-3 ofthe !CPA Repq_rt 1,991.93 7 967.71 P29,865.54 2 987.89 2 987.89 8 503.30 Dimention Data Philippines Inc. - 4 251.65 4 251.65 Intergrated Computer Systems Inc. - 1 072.43 1 072.43 2 144.87 Intergrated Computer Systems Inc. P68 013.50 p 119,442.99 p 119,442.99 P336,765.02 Annex F-4 ofthe !CPA Report JLGT Marketing Project Solution Group Asia Phili~ines Inc. Annex F-5 ofthe !CPA Report Project Solution Group Asia Philij)Qines Inc. Total In sum, petitioner's total allowable input VAT amounted only to P86,024,524.21, as computed below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter CY 2013 Amounts in Philippine Pesos 14 065 665.03 Input VAT on Purchases of 29 865.54 22 671 345.73 24 662 984.98 24 287 763.45 85 687 759.19 Capital Goods not exceeding P1M, Domestic Purchases and 1~095 530.57 68 013.50 119 442.99 119 442.99 336 765.02 Importation of Goods Other than Capital Goods, Domestic 22J39,359.23 24,_7821427.97 24,407,206.44 86,024,524.21 Purchases of Services and Services Rendered by Non- residents Amortization of Input VAT on Purchases of Capital Goods exceeding P1Million Total Allowable Input VAT

DECISION CTA CASE NO. 9021 Since petitioner did not submit VAT invoices/receipts proving the existence of its reported input VAT carry-over from previous quarter in the amount of P141,688,758.5574, its output VAT liability for the four quarters of CY 2013 in the aggregate amount of P17,101,547.87, shall be offset against the total allowable input VAT of P86,024,524.21. Hence, only the remaining input VAT of P68,922,976.34 can be attributed to the entire zero-rated sales declared by petitioner in the amount of P3,094,815,091.98 and only the input VAT of P20,250,968.78 is attributable to the valid zero-rated sales of P720,308,940.84, as computed below: 1st Quarter 2ndQ_uarter 3rd Quarter 4th Quarter CY 2013 Amounts in Philippine Pesos 86 024,524.21 Total Allowable Input 14 095 530.57 22 739_~359.23 24L782 427,97 24 407 206.44 17 101,547.87 VAT 3,280 412.69 4,970 955.96 4 504 739.08 4 345,440.14 Less: Output VAT7s Excess In_put VAT 10,815,117.88 17,768,403.27 20,277,688.88 20,061,766.30 68,922,976.34 Valid Zero-Rated Sales 157,978 984.85 180,310 274.56 171 354 300.72 210 665 380.71 720 308 940.84 Total Declared Zero- 681 627,197.74 633 439 343.86 622 742 425.98 594 676 168.41 3 094 815 091.98 Rated Sales 23.17674315% 28.46527869% 27.51607945% 35.42522669% % of Valid Zero-Rated 2,506,592.09 5,057,825.51 5,579,624.98 7,106,926.19 20,250,968.78 Sales to Total Declared Zero-Rated Sales Excess Input VAT Attributable to Valid Zero-Rated Sales Although the claimed input VAT was carried over by petitioner in its succeeding Quarterly VAT Returns76, the same remained unutilized until it was deducted as "VAT Refund/TCC Claimed'177 in its Quarterly VAT Return for the third quarter of CY 2014, thus, preventing the carry- over or application of the claimed input VAT in the next taxable quarters. In fine, petitioner has sufficiently proven its entitlement to a refund or issuance of TCC in the reduced amount of P20,250,968.78, representing petitioner's unutilized excess input VAT attributable to its zero-rated sales for the four quarters of CY 2013.)-- 74 Exhibit "P-4.2", Line 20A. 75 Exhibits "P-4.2", "P-5.2", "P-6.2" and "P-7.2", line 158. 76 Exhibits "P-11.2" (1stQtr of CY 2014), "P-12.2" (2nd Qtr of CY 2014), "P-13" (3rd Qtr of CY 2014). 77 Exhibit "P-13" (3rd Qtr of CY 2014), Line 23D.

DECISION CTA CASE NO. 9021 WHEREFORE, the present Petition for Review is PARTIALLY GRANTED. Accordingly, respondent is ORDERED TO REFUND or TO ISSUE A TAX CREDIT CERTIFICATE in favor of petitioner the amount of P20,250,968.78, representing petitioner's excess and unutilized input VAT attributable to zero-rated transactions for the four quarters of calendar year 2013. SO ORDERED. ~~~ C- a..J-~~/ ~ .fuANITO C. CASTANEDI(, JR. Associate Justice WE CONCUR: CAESAR A. CASANOVA ?!~T�~ Associate Justice CATHERINET.MANAHAN Associate Justice ATTESTATION I attest that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. ~-~t>c.~~.~~. juANITO C. CASTANEf>A, JR. Associate Justice Chairperson

DECISION CfA CASE NO. 9021 CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, and the Division Chairperson's Attestation, it is hereby certified that the conclusions in the above Decision were reached in consultation before the case was assigned to the writer of the opinion of the Court. Presiding Justice