REMA TIP TOP PHILIPPINES, INC., v. COMMISSIONER OF INTERNAL REVENUE

REPUBLIC OF THE PHILIPPINES Court of Tax Appeals QUEZON CITY FIRST DIVISION REMA TIP TOP PHILIPPINES, CTA Case No. 9836 INC., Members: Petitioner, - versus - DEL ROSARIO, P.J. , Chairperson, and MANAHAN, JJ. COMMISSIONER OF INTERNAL Promulgated: REVENUE, Respondent. )(- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - DECISION DEL ROSARIO, P.J.: Before this Court is a Petition for Review filed on May 15, 2018 by petitioner Rema Tip Top Philippines, Inc. against respondent Commissioner of Internal Revenue (CIR), praying for the refund of Five Million Eight Hundred Ninety-Seven Thousand Nine Hundred Seventeen and 11/100 Pesos (P5,897,917.11) representing its input Value-Added Ta)( (VAT) allegedly attributable or allocated to its zero- rated sales for ta)(able year (TY) 2016. THE PARTIES Petitioner Rema Tip Top Philippines, Inc. is a corporation duly organ ized and e)(isting under Philippine laws, with principal business address at Unit 502 Richmonde Plaza Ortigas, San Miguel Ave. cor. Lourdes St. , Pasig City.1 It is registered with the Bureau of Internal Revenue (BIR) as a VAT ta)(payer with Ta)( Identification No. (TIN) 008-042-655-000 under Certificate of Registration No. OCN3RC0000758904 .2 1 Par. 8, Petition for Review, CTA Docket vol. I, p. 19; and Exhibit "P-4-1 ", CTA Docket vo l. VI, p. 346 9. ' Exhibit "P-2", CTA Docket vol. VI , p. 3442()f1

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Respondent, on the other hand, is the duly appointed Commissioner of the BIR, with principal office at the 5th Floor, BIR National Office Building, Agham Road, Diliman, Quezon City.3 THE FACTS Petitioner was incorporated on May 9, 2011.4 Its primary purpose as stated in its Amended Articles of lncorporation5 is as follows: "To operate, conduct and carry on the business of engaging in any construction or construction-related work on commercial or industrial facilities to maximize the operational readiness thereof by employing or installing corrosion and wear and tear protection using techniques, now employed or to be developed, and taking advantage of versatile properties or materials such as, but not limited to, rubber, polyurethane, polytetrafluor ethylene, polyethylene, aluminum oxide ceramics and plyurea; to make, execute, and receive contracts or assignments or delegations of contracts for or relating to or connected with the business of providing corrosion and wear and tear protection and other commercial and industrial solutions; to manufacture, import or otherwise acquire, and to furnish all other tools and equipment connected with or required for the business; to manufacture, produce, adapt, prepare, import, and deal in any materials, articles, or things incidental to, or required for, or useful in connection with, any of such activities; and generally to carry on any other activities which can be advantageously pursued in conjunction with or incidental to any of the above purposes." On July 12, 2017, petitioner filed with the BIR its Amended Quarterly VAT Return for the first, second, third and fourth quarters of TY 2016. 6 On April 2, 2018, petitioner filed with respondent, through Revenue District Office (ROO) No. 43, an administrative claim for refund of input VAT attributable to zero-rated sales made in TY 2016.7 On April 12, 2018, petitioner received a Letter dated April 10, 2018 from ROO No. 43 denying its administrative claim for refund. 8 3 Par. 2, II. Statement of Facts and Issues, Pre-Trial Order, CTA Docket VI, p. 3082. 4 Exhibit "P-3-1", CTA Docket vol. VI, p. 3455. 5 Exhibit "P-3", CTA Docket vol. VI, pp. 3443-3453. 6 Exhibits "P-8", "P-9", "P-10" and "P-11", CTA Docket vol. VI, pp. 3489-3490, 3487-3488, 3485- 3486 and 3483-3484. 7 Exhibit "P-5", CTA Docket vol. VI, p. 3477. 8 Exhibit "P-70", CTA Docket vol. VI, p. 3592.()1)

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 In view of the denial of its administrative claim, petitioner filed the present Petition for Review before the Court on May 15, 2018.9 On July 13, 2018, within the extended period10, respondent filed his Answer, 11 with the following special and affirmative defenses: (1) petitioner's claim for tax refund was correctly denied for its failure to submit the documents required in Revenue Memorandum Order (RMO) 54-2014; (2) petitioner failed to comply with the invoicing and accounting requirements under the National Internal Revenue Code (NIRC); (3) the Financial Statements of petitioner did not show that it recorded nor earmarked the alleged unutilized input taxes subject of the present claim; (4) claimant has the burden of proof to establish the factual basis of the claim for tax credit or refund; and (5) tax refunds are in the nature of tax exemptions which are construed strictissimi juris against the taxpayer and liberally in favor of the government. On November 5, 2018, both the respondent's Pre-Trial Brief1 2 and petitioner's Pre-Trial Brief13 were filed. The Pre-Trial Conference was held on January 17, 201914. On April 11, 2019, the Court issued the Pre-Trial Order15 thereby terminating the pre-trial. Upon motion16 of petitioner, the Court commissioned Ms. Ma. Theresa R. Dela Roca, as Independent Certified Public Accountant (I CPA), on April 11, 2019. 17 . During trial, petitioner presented testimonial and documentary evidence. It presented the following witnesses: Ms. Jennilyn U. Gaanan, 18 petitioner's Director, Treasurer and Chief Financial Officer; and Ms. Ma. Theresa R. Dela Roca, 19 the Court-commissioned ICPA. Petitioner's Formal Offer of Documentary Exhi.bits20 was filed through registered mail on October 25, 2019. Petitioner's exhibits were admitted in evidence in the Resolution21 dated February 26, 2020, 9 CTA Docket vol. I, p. 12. 10 CTA Docket vol. V, p. 2299. 11 CTA Docket vol. V, pp. 2300-2305. 12 CTA Docket vol. V, pp. 2821-2823. 13 CTA Docket vol. V, pp. 2824-2856. 14 CTA Docket vol. V, pop. 2872-2874. 15 CTA Docket vol. V, pp. 3081-3094. 16 CTA Docket vol. V, pp. 2861-2865. 17 CTA Docket vol. V, pp. 3072-3077. 18 Exhibit "P-93", Judicial Affidavit of Jennilyn U. Gaanan, CTA Docket vol. V, pop. 2882-2905; and Minutes of Hearing dated May 21, 2019, CTA Docket vol. VI, pp. 3122-3123. 19 Exhibits "P-90" and 'P-92", CTA Docket vols. V and VI, pp. 3053-3059 and 3355-3372; and Minutes of Hearing dated September 3, 2019, CTA Docket vol. VI, pp. 3384-3388. 2o CTA Docket vol. VI, pp. 3422-3439. 21 CTA Docket vol. VI, pp.3603-3607 ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 except those exhibits the originals of which were not presented by petitioner for comparison, were not found in the records, and were not identified. During the hearing on September 3, 2019, respondent manifested that he has no evidence to present. 22 Petitioner filed its Memorandum23 on July 1, 2020, while respondent failed to file his memorandum despite due notice.24 The case was submitted for decision on July 22, 2020. 25 THE ISSUE The parties stipulated the following issue26 for resolution: "Whether petitioner is entitled to a refund of its alleged input VAT attributable or allocated to zero-rated sales made during the TY 2016 in the aggregate amount of P5,897,917.11." PARTIES' ARGUMENTS Petitioner argues that: (i) it is entitled to a refund of input VAT attributable to zero-rated sales made in TY 2016; (ii) under Section 106(A)(2)(a)(5) and 108(8)(3) of the NIRC of 1997, as amended, sales by a VAT-registered taxpayer to enterprises registered with the Philippine Economic Zone Authority (PEZA) or the Board of Investments (801) are subject to zero-rated VAT; (iii) it has complied with the requirements for a claim for VAT refund under Section 112(A) of the NIRC of 1997, as amended; (iv) the supporting documents submitted by petitioner for its administrative claim for refund are deemed complete. On the other hand, respondent in his Answer counter-argues that: (i) petitioner's claim for tax refund has no basis since its request was denied for petitioner's failure to submit the documents required in RMO No. 54-2014; (ii) petitioner failed to comply with the invoicing and accounting compliance required by the NIRC of 1997, as amended; and, (iii) the Financial Statements of petitioner did not show that it recorded nor earmarked the alleged unutilized input taxes that is the 22 CTA Docket vol. VI, pp. 3391-3392. 23 CTA Docket vol. VI, pp. 3609-3639. 24 CTA Docket vol. VI, p. 3608. 2s CTA Docket vol. VI, 3645. 26 Issue, Pre-Trial Order, CTA Docket vol. V, p. 3082o'j

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 subject of the present claim; and, (iv) the claimant has the burden of proof to establish the factual basis of the claim for tax credit or refund since tax refunds are in the nature of tax exemptions which are construed strictissimi juris against the taxpayer and liberally in favor of the government. THE COURT'S RULING Petitioner anchors its claim for refund on Section 112(A), in relation to Section 112(C), of the NIRC of 1997, as amended by R.A. No. 1096327 [otherwise known as the Tax Reform for Acceleration and Inclusion Act (TRAIN law)], viz.: "SEC. 112. Refunds or Tax Credits of Input Tax- (A) Zero-Rated or Effectively Zero-Rated Sales. - Any VAT- registered person, whose sales are zero-rated or effectively zero- rated may, within two (2) years after the close of the taxable quarter when the sales were made, apply for the issuance of a tax credit certificate or refund of creditable input tax due or paid attributable to such sales, except transitional input tax, to the extent that such input tax has not been applied against output tax: Provided, however, That in the case of zero-rated sales under Section 106(A)(2)(a)(1 ), (2) and (b) and Section 108 (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 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 of Input Taxes shall be Made. - In proper cases, the Commissioner shall grant a refund for creditable input taxes within ninety (90) days from the date of submission of the official receipts or invoices and other documents in support of the application filed in accordance with Subsections (A) and (B) hereof: Provided, That should the Commissioner find that the 27 An Act Amending Sections 5, 6, 24, 25, 27, 31, 32, 33, 34, 51, 52, 56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101, 106, 107, 108, 109, 110, 112, 114, 116, 127, 128, 129, 145, 148, 149, 151, 155, 171, 174, 175, 177, 178, 179, 180, 181, 182, 183, 186, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 232, 236, 237, 249, 254, 264, 269, AND 288; Creating New Sections 51-A, 148-A, 150-A, 150-8, 237-A, 264-A, 264-8, and 265-A; and Repealing Sections 35, 62, and 89; All Under Republic Act No. 8424, Otherwise Known as the National Internal Revenue Code of 1997, as Amended, and for Other PurposesO"J

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 grant of refund is not proper, the Commissioner must state in writing the legal and factual basis for the denial. In case of full or partial denial of the claim for tax refund, the taxpayer affected may, within thirty (30) days from the receipt of the decision denying the claim, appeal the decision with the Court of Tax Appeals: Provided, however, That failure on the part of any official, agent, or employee of the SIR to act on the application within the ninety (90)-day period shall be punishable under Section 269 of this Code." Based on the aforequoted provisions of law, a claimant must satisfy the following requisites in order to be entitled to a refund or tax credit of unutilized input VAT attributable to zero-rated sales: 1. the taxpayer-claimant must be VAT-registered; 2. the claim was filed within the prescribed periods both in the administrative and judicial levels; 3. there must be zero-rated or effectively zero-rated sales; 4. input taxes were incurred or paid; 5. such input taxes are attributable to zero-rated or effectively zero- rated sales; and, 6. said input taxes were not applied against any output VAT liability. First Requisite: Petitioner is a VAT-registered entity Petitioner has proven its compliance with the first requisite through its BIR Certificate of Registration which shows that it is a VAT- registered taxpayer with TIN No. 008-042-655-000.28 Second Requisite: Petitioner's administrative and judicial claims for refund were timely filed Anent petitioner's administrative claim, Section 112 (A) of the NIRC of 1997, as amended, specifically requires that the taxpayer's 2a Exhibit "P-2", CTA Docket vol. VI, p. 3442(Wl

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 application for refund or issuance of TCC of unutilized and/or excess input VAT arising from its domestic purchases of services and importation of goods other than capital goods, which are attributable to its zero-rated sales, must be made within two (2) years after the close of the taxable quarter when the sales were made. Petitioner's claim for refund or issuance of TCC covers the four (4) quarters of TY 2016 which closed on March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, respectively. Thus, it had two (2) years from the said dates or until March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018, respectively, within which to file its administrative claim for the quarters concerned. Thus, the filing of the administrative claim for refund or tax credit for the four quarters of TY 2016 with the BIR, on April 2, 2018, fell within the respective two-year prescriptive period. As shown below, petitioner timely filed its administrative claim for the four (4) quarters of TY 2016: Taxable Quarter End Last day of filing Date of Filing of Quarter Administrative Administrative (TY 2016) Claim for Refund Claim for Refund 1st Quarter 2nd Quarter March 31, 2016 April 2, 201829 I 3rd Quarter 4th Quarter June 30, 2016 June 30,2018 April 2, 2018 September 30, 2016 September 30, 2018 I ' December 31, 2016 December 31 , 2018 I Anent petitioner's judicial claim for refund or issuance of TCC, Section 11 of Republic Act No. (RA) 1125,30 as amended by RA No. 9282, 31 provides the period of limitation within which to file an appeal before this Court, viz.: "SEC. 11. Who May Appeal; Mode of Appeal; Effect of Appeal. -Any party adversely affected by a decision, ruling or inaction of the Commissioner of Internal Revenue, the Commissioner of Customs, the Secretary of Finance, the Secretary of Trade and Industry or the Secretary of Agriculture or the Central Board of Assessment Appeals or the Regional Trial Courts may file an appeal with the CTA within thirty (30) days after the receipt of such decision or ruling or after the 29 March 31,2018 fell on a Saturday. April2, 2018 is the next working day. 30 An Act Creating the Court of Tax Appeals. 31 An Act Expanding the Jurisdiction of the Court of Tax Appeals (CTA), Elevating Its Rank to the Level of a Collegiate Court with Special Jurisdiction and Enlarging its Membership Amending for the Purpose Certain Sections of Republic Act No. 1125, as amended, otherwise known as the law creating the Court of Tax Appeals, and for Other Purposes.(1J

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 expiration of the period fixed by law for action as referred to in Section 7(a)(2) herein. Appeal should be made by filing a petition for review under a procedure analogous to that provided for under Rule 42 of the 1997 Rules of Civil Procedure with the CTA within thirty (30) days from the receipt of the decision or ruling or in the case of inaction as herein provided, from the expiration of the period fixed by law to act thereon. xxx" As aforestated, petitioner filed its administrative claim for refund or issuance of TCC representing its excess and/or unutilized input VAT forTY 2016 in the amount of P5,897,917.11 on April 2, 2018. Within the 90-day period to act on petitioner's administrative claim for refund, the CIR denied petitioner's administrative claim in a Letter dated April 10, 2018. Since petitioner received the aforesaid Letter on April 12, 2018, petitioner had thirty (30) days from said date or until May 12, 2018 within which to appeal to the CTA. Considering, however that May 12, 2018 fell on a Saturday and May 14, 2018 was declared as a non- working holiday, petitioner had until May 15, 2018, the next working day, within which to file its judicial claim for refund. The Petition for Review filed on May 15, 2018 was therefore filed within the reglementary period to appeal. Thus, the Court has jurisdiction to take cognizance of the Petition for Review. Third Requisite: Petitioner had zero-rated sales during the subject period in the amount of P62,449,305. 68 Sales of Goods and Services to Entities Registered with PEZA and 801 whose products are 100% exported Petitioner maintains that its sales of goods and services to entities registered with PEZA and 801 during the period October 1, 2015 to March 31, 2016 are subject to zero percent (0�/o) VAT, pursuant to Sections 106(A)(2)(a)(3), (5) and (c) and 108(8)(3) of the NIRC of 1997, as amended. The pertinent provisions of Sections 106(A)(2)(a)(3), (5) and (c) and 108(8)(3) of the NIRC of 1997, as amended, state~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 "SEC. 106. Value-Added Tax on Sale of Goods or Properties. (A) Rate and Base of Tax- xxx XXX XXX XXX (2) The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: (a) Export Sales.- The term 'export sales' means: XXX XXX XXX (3) Sale of raw materials or packaging materials to export oriented enterprise whose export sales exceed seventy percent (70%) of total annual production; XXX XXX XXX (5) Those considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investment Code of 1987, and other special laws. XXX XXX XXX (1) Sales to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects such sales to zero rate." (Boldfacing supplied) "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties. - (A) Rate and Base of Tax.- XXX XXX XXX (B) Transactions Subject to Zero Percent (0%) Rate. - The following services performed in the Philippines by VAT- registered persons shall be subject to zero percent (0%) rate: XXX XXX XXX (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate;" (Boldfacing supplie~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Relative thereto, Sections 4. 106-5 and 4.1 08-5 of Revenue Regulations (RR) No. 16-2005, as amended by RR No. 04-07, also provide: "SEC. 4.106-5. Zero-Rated Sales of Goods or Properties. -XXX The following sales by VAT-registered persons shall be subject to zero percent (0%) rate: (a) Export sales.- 'Export Sales' shall mean: XXX XXX XXX (5) Transactions considered export sales under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987, and other special laws. 'Considered export sales under Executive Order No. 226' shall mean the Philippine port F.O.B. value determined from invoices, bills of lading, inward letters of credit, landing certificates, and other commercial documents, of export products exported directly by a registered export producer, or the net selling price of export products sold by a registered export producer to another export producer, or to an export trader that subsequently exports the same; Provided, That sales of export products to another producer or to an export trader shall only be deemed export sales when actually exported by the latter, as evidenced by landing certificates or similar commercial documents; Provided, further, That pursuant to EO 226 and other special laws, even without actual exportation, the following shall be considered constructively exported: (1) sales to bonded manufacturing warehouses of export-oriented manufacturers; (2) sales to export processing zones pursuant to Republic Act (RA) Nos. 7916, as amended, 7903, 7922 and other similar export processing zones; (3) sale to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority pursuant to RA 7227; (4) sales to registered export traders operating bonded trading warehouses supplying raw materials in the manufacture of export products under guidelines to be set by the Board in consultation with the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC); (5) sales to diplomatic missions and other agencies and/or instrumentalities granted tax immunities, of locally manufactured, assembled or repacked products whether paid for in foreign currency or not. For purposes of zero-rating, the export sales of registered export traders shall include commission income. The exportation of goods on consignment shall not be deemed export sales until the export products consigned are in fact sold by the consignee: and Provided, finally, that sales of goods, properties or services made by a VAT-registered supplier to a SOl-registered manufacturer/ producer whose products are 100% exported are considered export sales. A certification to this effect must be issued by tht!l

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Board of Investment (801) which shall be good for one year unless subsequently re-issued by the 801. XXX XXX XXX (b) 'Sales to Persons or Entities Deemed Tax-exempt under Special Law or International Agreement'- Sales of goods or property to persons or entities who are tax-exempt under special laws, e.g. sales to enterprises duly registered and accredited with the Subic Bay Metropolitan Authority (SBMA) pursuant to R.A. No. 7227, sales to enterprises duly registered and accredited with the Philippine Economic Zone Authority (PEZA) or international agreements to which the Philippines is signatory, such as, Asian Development Bank (ADB), International Rice Research Institute (IRRI), etc., shall be effectively subject to VAT at zero-rate." (Boldfacing supplied) "SEC. 4.108-5. Zero-Rated Sale of Services. - XXX XXX XXX (b) Transactions Subject to Zero Percent (0%) VAT Rate.- The following services performed in the Philippines by a VAT- registered person shall be subject to zero percent (0%) VAT rate: XXX XXX XXX (3) Services rendered to persons or entities whose exemption under special laws or international agreements to which the Philippines is a signatory effectively subjects the supply of such services to zero percent (0%) rate;" (Boldfacing supplied) RA No. 7916, as amended by RA No. 8748, otherwise known as "The Special Economic Zone Act of 1995", provides for the creation of the PEZA and treatment of special economic zones (Ecozones) as separate customs territory, to wit: "REPUBLIC ACT NO. 7916 (AS AMENDED BY REPUBLIC ACT NO. 8748) AN ACT PROVIDING FOR THE LEGAL FRAMEWORK AND MECHANISMS FOR THE CREATION, OPERATION, ADMINISTRATION, AND COORDINATION OF SPECIAL ECONOMIC ZONES IN THE PHILIPPINES, CREATING FOR THIS PURPOSE, THE PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA) AND FOR OTHER PURPOSES. XXX XXX XXX SEC. 8. ECOZONE to be Operated and Managed as Separate Customs Territory.- The ECOZONE shall be managed and operated by the PEZA as separate customs territory. The PEZA is hereby vested with the authority to issue certificates of origi(!1

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 for products manufactured or processed in each ECOZONE in accordance with the prevailing rules of origin, and the pertinent regulations of the Department of Trade and Industry and/or the Department of Finance. XXX XXX XXX SEC. 24. Exemption form National and Local Taxes.- Except for real property taxes on land owned by developers, no taxes, local and national, shall be imposed on business establishments operating within the ECOZONE. xxx" (Boldfacing supplied) Since an Ecozone is treated as a foreign territory by legal fiction, sales of goods and services made by a VAT-registered person in the Philippine customs territory to an entity registered and operating within an Ecozone are considered exports to a foreign country subject to 0�/o VAT. This was elucidated by the Supreme Court in Commissioner of Internal Revenue vs. Toshiba Information Equipment (Phils.), lnc., 32 to wit: "This Court agrees, however, that PEZA-registered enterprises, which would necessarily be located within ECOZONES, are VAT-exempt entities, not because of Section 24 of Rep. Act No. 7916, as amended, which imposes the five percent (5%) preferential tax rate on gross income of PEZA-registered enterprises, in lieu of all taxes; but, rather, because of Section 8 of the same statute which establishes the fiction that ECOZONES are foreign territory. xxx An ECOZONE or a Special Economic Zone has been described as- ... [S]elected areas with highly developed or which have the potential to be developed into agroindustrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds are fixed or delimited by Presidential Proclamations. An ECOZONE may contain any or all of the following: industrial estates (IEs), export processing zones (EPZs), free trade zones and tourist/recreational centers. The national territory of the Philippines outside of the proclaimed borders of the ECOZONE shall be referred to as the Customs Territory. Section 8 of Rep. Act No. 7916, as amended, mandates that the PEZA shall manage and operate the ECOZONES as a separate customs territory; thus, creating the fiction that the ECOZONE is a foreign territory. As a result, sales made by a supplier in the Customs Territory to a purchaser in the ECOZONE shall be treated as an exportation from the Customs Territory. Conversely, sales made by a supplier from the ECOZONE to a purchaser in the Customs "G.R. No. 150154, August 9, 2005.~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Territory shall be considered as an importation into the Customs Territory. Given the preceding discussion, what would be the VAT implication of sales made by a supplier from the Customs Territory to an ECOZONE enterprise? The Philippine VAT system adheres to the Cross Border Doctrine, according to which, no VAT shall be imposed to form part of the cost of goods destined for consumption outside of the territorial border of the taxing authority. Hence, actual export of goods and services from the Philippines to a foreign country must be free of VAT; while, those destined for use or consumption within the Philippines shall be imposed with ten percent (10%) VAT." Meanwhile, pursuant to RMO No. 9-2000, 33 sales of goods, properties or services made by a VAT-registered supplier to a 801 registered entity whose products are 1OOo/o exported shall be accorded automatic VAT zero-rating, subject to the reportorial and documentary requirements prescribed under Section 3 thereof, thus: "SECTION.3. Sales of goods, properties or services made by a VAT registered supplier to a 801 registered exporter shall be accorded automatic zero-rating, i.e., without necessity of applying for and securing approval of the application for zero-rating as provided in Revenue Regulations No. 7-95, subject to the following conditions: (1) The supplier must be VAT-registered; (2) The SOl-registered buyer must likewise be VAT-registered; (3) The buyer must be a SOl-registered manufacturer/producer whose products are 100% exported. For this purpose, a Certification to this effect must be issued by the Board of Investments (801) and which certification shall be good for one year unless subsequently re-issued by the 801; (4) The SOl-registered buyer shall furnish each of its suppliers with a copy of the aforementioned SOl Certification which shall serve as authority for the supplier to avail of the benefits of zero-rating for its sales to said SOl-registered buyers; and (5) The VAT-registered supplier shall issue for each sale to SOl- registered manufacturer/exporters a duly registered VAT invoice with the words 'zero-rated' stamped thereon in compliance with Sec.4.108-1 (5) of Revenue Regulations No. 7-95. The supplier must likewise indicate in the VAT-invoice the name and SOl-registry number of the buyer." (Boldfacing supplied) 33 SUBJECT: Tax Treatment of Sales of Goods, Properties and Services Made by VAT-registered Suppliers to SOl-registered Manufacturers-Exporters With 100% Export Sales. ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Based on the foregoing, sales of goods and services by a VAT- registered taxpayer, such as petitioner, to entities located in the ECOZONEs, as well as to SOl-registered entities whose products are 100% exported, are considered "export sales" subject to VAT zero- rating pursuant to Sections 106(A)(2)(a)(3), (5) and (c) and 108(8)(3) of the NIRC of 1997, as amended, and as implemented by Sections 4.106-5 and 4.108-5 of RR No. 16-05, as amended. To prove that its clients are duly registered with the PEZA and the 801, petitioner submitted various certifications issued by the said agencies. Listed below are the clients of petitioner registered with the PEZA and the 801: Clients Certifying Proof of VAT Exhibit Certification Body Zero-rating Period FCF MINERALS CORPORATION Confirmation CORAL BAY NICKEL 801 Letter from 801 P-28 to January 1 to CORPORATION (CBNC) PEZA dated April 29, P-28.1 December TAGANITO HPAL NICKEL PEZA 2016; Certificate 31, 2016 CORPORATION (THPAL) No. 2016-011 Certificate No. P-29 2016 2016-0856 Certificate No. P-30 2016 2016-0534 Upon review of the certifications issued by the PEZA and the 801, the Court considers the sales of goods and services by petitioner to the above-listed clients subject to VAT zero-rating. Sales of Service to Non-resident Foreign Corporations (NRFCs) Petitioner alleges that out of its zero-rated sales aggregating in the amount of P83, 178,005.10 for the four quarters of TY 2016, P3,309,019.20 pertains to sale of services to NRFCs, as follows: Customers 3rd Quarter 4th Quarter Total Rema Tip Top Malaysia BHD fit 1,023,663.08 1,023,663.08 PTY -p Rema Tip Top Malaysia SDN - BHD 2,285,356.12 2,285,356.12 p 1,023,663.08 Total 2,285,356.12 fit 3,309,019.20 Section 108(8)(2) of the NIRC of 1997, as amended, provides: C1 "SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties.-

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 (A) XXX (B) Transactions Subject to Zero Percent (0%) Rate. - The following services performed in the Philippines by VAT-registered persons shall be subject to zero percent (0%) rate: (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 (SSP); (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" (Boldfacing supplied) Certain essential elements must be present in order for a sale or supply of services to be subject to VAT rate of zero percent {0�/o} under Section 108(8)(2) of the NIRC of 1997, as amended, to wit: 1. The recipient of the services is a foreign corporation, and the said corporation is doing business outside the Philippines, or is a non-resident person not engaged in business who is outside the Philippines when the services are performed; 34 2. The payment for such services should be in acceptable foreign currency accounted for in accordance with the 8SP rules�' 35 3. The services fall under any of the categories under Section 108(8)(2)36, or simply, the services rendered should be other than "processing, manufacturing or repacking goods";37 and 34 Site/ Philippines Corporation (Formerly Clientlogic Phi/s., Inc.) vs. Commissioner of Internal Revenue, G. R. No. 201326, February 8, 2017 35 Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., G.R. No. 153205, January 22, 2007; Commissioneroflnternal Revenue vs. American Express International, Inc. (Philippine Branch), G. R. No. 152609, June 29, 2005 36 Commissioner of Internal Revenue vs. American Express International, Inc. (Philippine Branch), supra. 37 Commissioner of Internal Revenue vs. Burmeister and Wain Scandinavian Contractor Mindanao, Inc., supra.\?1

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 4. The services must be performed in the Philippines by a VAT- registered person. 38 To prove that its clients are NRFC for purposes of VAT zero- rating under Section 108(8)(2) of the NIRC of 1997, as amended, petitioner must establish that: (1) the client was established under the laws of a foreign country; and, (2) it is not engaged in trade or business in the Philippines. To be sure, there must be sufficient proof of both of these requirements to establish that the clients are foreign corporations AND are not doing business in the Philippines. 39 Thus, petitioner must submit for each NRFC client, at the very least, both: (1) the SEC Certificate of Non-Registration of Corporation/Partnership; AND (2) Proof of Certificate/Articles of Foreign Incorporation/Association showing the state/province/country where the entity was organized.40 The SEC Certificate of Non-Registration shows that the foreign client is not engaged in trade or business in the Philippines. On the other hand, the Certificate/Articles of Foreign Incorporation/Association proves that the client was established under the laws of a foreign country. Together, these two (2) documents prove the two (2) requisites necessary to establish the NRFC status of a client. Upon review of the records, it is shown that petitioner failed to present the two (2) required documents to prove the NRFC status of its foreign clients. Thus, the entire amount of P3,309,019.20 representing sales to alleged NRFCs, detailed below, shall be disallowed: ORIS I Exhibit ORJSI Date Customer Amount 3rd Quarter P-4814 8/25/16 REMA TIP TOP MALAYSIA BHO PTY p 506,653.13 OR 1032 OR 1042 P-247 9/23/16 REMA TIP TOP MALAYSIA BHO PTY 517,009.95 Subtotal - 3rd Quarter 1,023,663.08 P-267 10/21/16 REMA TIP TOP MALAYSIA SON BHO 4th Quarter P-296 11/10/16 REMA TIP TOP MALAYSIA SON BHO 643,453.72 OR 1045 705,561.54 OR 1050 38 Section 108(8), NIRC of 1997, as amended. 39 Commissioner of Internal Revenue vs. Deutsche Knowledge Services Pte. Ltd., G.R. No. �234445, July 15, 2020. 4 Commissioner of Internal Revenue vs. CITCO International Support Services Limited-Philippine ROHQ, CTA EB No. 2015, November 29, 2019~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 OR 1055 P-308 12/22/16 REMA TIP TOP MALAYSIA SON BHD 63,792.04 OR 1055 P-309 12/22/16 REMA TIP TOP MALAYSIA SON BHD 250,782.37 OR 1053 P-310 12/16/16 REMA TIP TOP MALAYSIA SON BHD 621,766.45 Subtotal - 4th Quarter 2,285,356.12 Total p 3,309,019.20 Disallowed Zero-rated Sales In its 15\ 2nd, 3rd and 4th Quarterly VAT Returns41 forTY 2016, petitioner reported total sales of P97,802,307.14 which included zero- rated sales in the amount of P83, 178,005.10, broken down as follows: Sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total VATable Sales P14,624,302.04 Zero-rated Sales fD 3,570,726.25 fit 3,147,236.77 p 4,634, 724.97 p 3,271,614.05 Total 83,178,005.10 22,759,452.94 19,064,944.08 20,776,007.25 20,577,600.83 -- p 23,ll_49,214.88 p 97,802,307.14 p 26,330,179.1~-- p 22,212,180.85 P25,410,732.22 The Court shall then examine whether the reported zero-rated sales of petitioner complied with the invoicing requirements under Sections 113(A)(1) and (2), (8)(1 ), (2)(c) and (3) of the NIRC of 1997, as amended, viz: "SEC. 113. Invoicing and Accounting Requirements for VAT- Registered Persons.- (A) Invoicing Requirements. -A VAT-registered person shall issue: (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice or VAT Official Receipt - The following information shall be indicated in the VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his Taxpayer's Identification Number (TIN); (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the value-added tax: Provided, That: 41 Exhibit Nos. "P-8" to "P-11", CTA Docket vol. VI, pp. 3483-3491l!'IJ

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 XXX XXX XXX (c) If the sale is subject to zero percent (0%) value- added tax, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; XXX XXX XXX (3) The date of transaction, quantity, unit cost and description of the goods or properties or nature of the service; xxx" The same requirements are provided for under Sections 4.113- 1(A)(1) and (2), (8)(1) and (2)(c) of RR No. 16-2005, as follows: "SEC. 4.113-1. Invoicing Requirements.- (A) A VAT-registered person shall issue:- (1) A VAT invoice for every sale, barter or exchange of goods or properties; and (2) A VAT official receipt for every lease of goods or properties, and for every sale, barter or exchange of services. Only VAT-registered persons are required to print their TIN followed by the word 'VAT' in their invoice or official receipts. Said documents shall be considered as a 'VAT Invoice' or VAT official receipt. All purchases covered by invoices/receipts other than VAT lnvoiceNAT Official Receipt shall not give rise to any input tax. VAT invoice/official receipt shall be prepared at least in duplicate, the original to be given to the buyer and the duplicate to be retained by the seller as part of his accounting records. (B) Information contained in VAT invoice or VAT official receipt. - The following information shall be indicated in VAT invoice or VAT official receipt: (1) A statement that the seller is a VAT-registered person, followed by his TIN; (2) The total amount which the purchaser pays or is obligated to pay to the seller with the indication that such amount includes the VAT; Provided, That: XXX XXX XXX

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 (c) If the sale is subject to zero percent (0%) VAT, the term 'zero-rated sale' shall be written or printed prominently on the invoice or receipt; xxx" Upon further evaluation, the Court finds that the reported zero- rated sales in the amount of P17,255,349.43 could not qualify for VAT zero-rating for petitioner's failure to comply with the invoicing requirements under the NIRC of 1997, as amended, and RR No. 16- 2005, as follows: ORIS I OR/51 Date Customer Amount Exhibit 1) Sale of services not supported by VAT OR 1st Quarter 1/11/16 TAGANITO HPAL NICKEL P-337, CR 0033 CORPORATION p 615,887.20 P-4829 Subtotal - 1st Quarter 615,887.20 Total- Sale of service not supported by VAT OR 615,887.20 2) Sale of services supported by VAT OR wherein date, payor details or amounts are unreadable 1st Quarter 1/15/16 TAGANITO HPAL NICKEL 1,948,286.07 P-4796 2/20/16 CORPORATION P-134 to OR 1010 TAGANITO HPAL NICKEL SI1094/SI CORPORATION 4,976,751.35 P-134-B 1093/SI 1092 Subtotal- 1st Quarter 6,925,037.42 2nd Quarter 5/6/16 TAGANITO HPAL NICKEL 2,846,064.78 P-338 Sl 1157 CORPORATION Subtotal - 2nd Quarter 2,846,064.78 4th Quarter 12/16/16 TAGANITO HPAL NICKEL 516,274.00 P-4827 OR 1051 12/16/16 CORPORATION 2,808,076.00 P-4827 OR 1051 12/16/16 TAGANITO HPAL NICKEL 1,744,010.03 P-4827 OR 1051 12/16/16 CORPORATION 1,800,000.00 P-4827 OR 1051 TAGANITO HPAL NICKEL CORPORATION TAGANITO HPAL NICKEL CORPORATION Subtotal - 4th Quarter 6,868,360.03 Total- Sale of services supported by VAT OR wherein date, payor 16,639,462.23 details or amounts are unreadable t-17,255,349.43 Total Zero-rated Sales Not Proper!}' Substantiated Thus, the total disallowances on petitioner's reported total zero- rated sales per the Court's verification amounts P20,564,368.63, as shown hereunder:0/

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Disallowances 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Sale of services to non- - - ,1 ,023,663.08 ,2,285,356.12 p 3,309,019.20 resident foreign client not qualified for VAT zero-rating , 615,887.20 - - - 615,887.20 under Sec. 108(8)(2) of the NIRC of 1997, as amended 6,925,037.42 2,846,064.78 - 6,868,360.03 16,639,462.23 Sale of service not supported by VAT OR P7,540,924.62 P2,846,064.78 P1 ,023,663.08 P9,153,716.15 P20,564,368.63 Sale of goods supported by VAT ORs but with unreadable details (date, payor details, or amount) Total Disallowed Zero- rated Sales In addition, the Court finds that the following amounts of zero- rated sales reported by petitioner were higher than the amounts reflected in the VAT invoices and official receipts, thus, the difference of P164,330.79 should likewise be disallowed: SI/OR SI/OR Customer Name PerSLS Per VAT Variance Exhibit Date Invoice/Official Receipt 1st Quarter Sl1072 1/29/16 CORAL BAY NICKEL p 44,625.46 p 44,625.28 p 0.18 P-101 CORPORATION Sl 1095 2/22/16 CORAL BAY NICKEL 30,049.07 30,049.04 0.03 P-124 CORPORATION 0.21 Subtotal - 1st Quarter p 74,674.53 p 74,674.32 p CORAL BAY NICKEL 2nd Quarter CORPORATION CORAL BAY NICKEL OR 1016 4/1/16 CORPORATION p 1,535,533.74 p 1,535,533.73 0.01 P-4800 Sl 1181 5/31/16 TAGANITO HPAL NICKEL 46,788.32 46,788.00 0.32 P-166 CORPORATION 0.33 Subtotal - 2nd Quarter TAGANITO HPAL NICKEL p 1,582,322.06 p 1,582,321.73 p CORPORATION 3rd Quarter TAGANITO HPAL NICKEL CORPORATION OR 1030 8/12/16 p 1,816,513.19 P-4811 OR 1030 8/12/16 2,500,000.00 p 4,155,182.94 t-161,330.25 P-4811 OR 1031 8/28/16 60,000.00 57,000.00 3,000.00 P-4812 p 4,376,513.19 Subtotal - 3rd Quarter p 4,212,182.94 P164,330.25 I Total Excess Zero-rated Sale Claimed P164,330. 79 I In sum, out of the total reported zero-rated sales of P83, 178,005.10, only the amount of t-62,449,305.68 shall be considered as valid zero-rated sales for the four quarters of TY 2016, detailed as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Zero-rated Sales p 22,759,452.94 p 19,064,944.08 p 20,776,007.25 p 20,577,600.83 p 83,178,005.10 Less: Disallowances 7,540,924.62 2,846,064.78 1,023,663.08 9,153,716.15 20,564,368.63 Excess Claims 0.21 0.33 164,330.25 Total Valid Zero- - 164,330.79 rated Sales p 15,218,528.11 p 16,218,878.97 p 19,588,013.92 p 11 ,423,884.68 p 62,449,305.68 Ill

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Fourth and Fifth Requisites: Petitioner incurred/paid input taxes attributable to zero-rated sales in the total amount of P291,262.93 Having found that petitioner had valid VAT zero-rated sales in the total amount of P62,449,305.68 for the four quarters of TY 2016, the Court shall determine whether petitioner complied with the requisites pertaining to the input VAT being claimed for refund or issuance of a tax credit certificate. For the four quarters of TY 2016, petitioner claims a total amount of P6,762,558.04 allowable input VAT arising from its domestic purchases and importation of goods other than capital goods, and domestic purchases of services. Summarized below are petitioner's current domestic purchases and importation of goods other than capital goods and domestic purchases of services in the total amount of P56,354,650.42, and the corresponding input taxes for the four quarters of TY 2016 in the total amount of P6,762,558.04: Gross Amount of Purchases 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total and Importations p 114,574.85 p 98,156.47 p 87,326.02 p 287,282.26 p 587,339.60 Domestic Purchases of Goods Other Capital Goods (Line 21E) 759,331.16 1,323,256.87 395,878.16 946,617.16 3,425,083.35 Importation of Goods Other than Capital Goods (Line 21G) 318,512.62 484,343.63 892,450.48 1,497,611.51 3,192,918.24 Domestic Purchase of Services 9,965,604.54 15,473,118.03 6,709,880.34 17,000,706.32 49,149,309.23 (Line 211) P11,158,023.17 P17 ,378,875.00 P8,085,535.00 P19,732,217.25 P56,354,650.42 Others (Line 21 N) Total Current Purchases/Importations Input Tax on Purchases and 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Importations p 13,748.98 p 11,778.78 p 10,479.12 p 34,473.87 p 70,480.75 Domestic Purchases of Goods 91,119.74 Other Capital Goods (Line 21F) 158,790.82 47,505.38 113,594.06 411,010.00 Importation of Goods Other 38,221.51 than Capital Goods (Line 21 H) 1 '195,872.54 58,121.24 107,094.06 179,713.38 383,150.19 Domestic Purchase of Services p 1,338,962.77 1,856,774.16 805,185.64 2,040,084.76 5,897,917.10 (Line 21J) p 2,085,465.00 p 970,264.20 p 2,367,866.07 P6, 762,558.04 Others (Line 21 0)42 Total Curre_nt Input Tax Petitioner claims that out of the total domestic purchases and importation of goods other than capital goods, and domestic purchases of services in the total amount of P56,354,650.42, with corresponding input VAT in the amount of P6,762,558.04, domestic purchases and 42 No figures reported in the Quarterly VAT Returns of TY 2016. Amounts were computed by the Court.QI'J

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 importations as reflected in "Others (Line 21 N/0)" of the Quarterly VAT Returns of TY 2016 in the total amount of ~49, 149,309.23, with corresponding input VAT amount of~5,897,917.10 should be granted for refund. As validated by the Court-commissioned Independent Certified Public Accountant (ICPA) in the Amended ICPA Report,43 petitioner segregated the purchases of goods and services and importations directly attributable and allocable to zero-rated sales in the portion "Others (Line 21 N/0)" in the Quarterly VAT Returns of TY 2016. Domestic purchases and importation of goods other than capital goods, and domestic purchase of services in the total amount of ~49,149,309.23, with corresponding input VAT of ~5,897,917.10 as reported in "Others (Line 21 N/0)" in the Quarterly VAT Returns of TY 2016 was determined by petitioner44 and the ICPA45 to be composed of purchases of goods and services directly attributable to zero-rated sales, and purchases of goods and services allocable to zero-rated sales, as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total P47,499,699.48 Purchases allocated to p 9,592,319.46 P15, 168,639.11 p 6,215,096.42 P16,523,644.49 Zero-rated Sales 1,649,609.75 Purchases Directly 373,285.08 304,478.92 494,783.92 477,061.83 Attributable to Zero-rated ~49, 149,309.23 Sales ~ 9,965,604.54 ~15,473, 118.03 ~ 6,709,880.34 ~17,000,706.32 Total Purchases Allocated and Directly Attributable to Zero-rated Sales (Line 21 N of Quarterly VAT Return) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total p 745,811.57 p 1,982,837.34 p 5,699,963.94 Input VAT allocated to p 1'151 ,078.34 p 1,820,236.69 Zero-rated Sales 59,374.07 57,247.42 197,953.17 Input VAT Directly 44,794.21 36,537.47 ~ 805,185.64 ~ 2,040,084.76 ~ 5,897,917.11 Attributable to Zero-rated Sales p 1'195,872.54_ _jltJ,8_5E;,774.16 Total Input VAT Allocated and Directly Attributable to Zero-rated Sales Upon verification by the Court, it is found that petitioner failed to prove that certain domestic purchases and importation of goods other than capital goods, and domestic purchase of services in the total amount of ~1 ,649,609.75 were directly attributable to zero-rated sales made during the four quarters of TY 2016. Thus, the Court is constrained to consider the whole amount of ~56,354,650.42 as petitioner's total domestic purchases and importation of goods other than capital goods, and domestic purchase of services, subject to proportional allocation between VATable, VAT-exempt and VAT 43 Exhibit "P-91", CTA Docket vol. VI, pp. 3213-3214. 44 Petition for Review, CTA Docket vol. I, pp. 22-23. 45 Tables XIV-A to XIV-E, Exhibit "P-91", CTA Docket vol. VI, pp. 3226-3230. ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 zero-rated sales pursuant to Section 112(A) of the NIRC of 1997, as amended. Of the total amount of P56,354,650.42 subject to allocation, the ICPA was only able to vouch domestic purchases and importation of goods other than capital goods, and domestic purchases of services in the total amount of P51 ,947,439.73, as shown below:46 Domestic Purchases p 22,189,548.08 29,757,891.65 Importations Total Vouched Purchases and p 51,947 439.73 Importations 4,407,210.69 Add: Unaccounted Purchases p 56,354,650.42 Total Reported Domestic Purchases and Importations Therefore, the unaccounted purchases amounting to P4,407,210.69, which were not supported with VAT official receipts or invoices, shall not be considered in the computation of petitioner's valid input taxes for the period for failure to substantiate the same. The input tax arising from said unsubstantiated purchases amounting to P528,865.28 shall thus be disallowed.47 Of the total vouched purchases and importations made by petitioner in the amount of P51,947,439.73, the amount of P6,318,520.73 arising from domestic purchases of goods other than capital goods and domestic purchase of services were not properly substantiated, and which shall be disallowed by the Court for failure to meet the invoicing requirements under Sections 11 O(A), 113(A) and (B), and 237 of the NIRC of 1997, as amended, in relation to Sections 4.110-1, 4.110-2, 4.110-8, and 4.113-1 of RR No. 16-05, as amended. Thus, per the ICPA Report, the total domestic purchases and importation of goods other than capital goods, and domestic purchase of services which were validly substantiated amounted to P45,628,919.00, as follows: 48 Domestic Purchases fit 15,871,027.35 29,757,891.65 Importations Total Substantiated Domestic p 45,628,919.00 Purchases and Importations Finding the exceptions noted by the ICPA reasonable and appropriate, the Court shall further disallow input VAT in the total amount of P758, 196.27 sourced from domestic purchases and 46 Exhibit "P-91", CTA Docket vol. VI, p. 3223. 47 P4,407,210.69 (VATable purchase) x 12% = P528,865.28. "Tables XIV-A to XIV-E, Exhibit "P-91", CTA Docket vol. VI, pp. 3226-3230QI}

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 importation of goods other than capital goods, and domestic purchase of services which failed to follow the invoicing requirements required by law and regulations, detailed as follows: 49 Period Input VAT per ICPA Findings 1st Quarter Not Substantiated Substantiated Total 2nd Quarter 341,767.95 3rd Quarter p 177,327.57 p 164,440.38 p 430,740.19 4th Quarter 601,797.75 Out of Period 150,499.55 280,240.64 1'127 ,455.67 Total 160,957.90 189,997.23 411,800.52 2,662 719.46 79,414.02 1,048,041.65 160,957.90 - p 758,196.27 p 1 904,523.19 p Moreover, upon further verification, the Court shall disallow the following input VAT on domestic purchases of goods other than capital goods, and domestic purchases of services, in the total amount of P1 ,562,076.91, for failure to comply with invoicing requirements: Date Exhibit Payee Amount No. 1) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where amount of VATable sale is not presented or incorrectly presented 1st Quarter 3/8/2016 P-370 GERRY'S GRILL p 249.75 1/22/2016 P-1452 CLYBROS MERCHANDISING INC 342.27 1/29/2016 P-1681 PARKWAY 105.71 2/20/2016 P-1692 SAINT PETER DIAGNOSTIC AND LABORATORY 85.71 2/20/2016 P-1756 SAINT PETER DIAGNOSTIC AND LABORATORY 85.71 3/11/2016 P-2454 MOTHERS CHOICE SURIGAO INC 304.71 3/4/2016 P-2468 PRUDENTIAL CUSTOMS BROKERAGE SERVICES INC. 516.11 3/18/2016 P-3917 PRESAM SHELL SERVICE CENTER 99.49 Subtotal- 1st Quarter 1,689.97 2nd Quarter 5/23/2016 P-2329 SIMPLEX INDUSTRIAL CORPORATION 85.29 Subtotal - 2nd Quarter 85.29 3rd Quarter 7/23/2016 P-1969 ULING ROASTERS 77.14 7/12/2016 P-1975 ULING ROASTERS 57.86 7/15/2016 P-1986 ULING ROASTERS 77.14 7/8/2016 P-2003 RIVERSIDE PARTS MASTER, INC. 120.54 7/11/2016 P-2018 K3CP CORPORATION 74.89 7/1/2016 P-2024 ULING ROASTERS 77.14 7/8/2016 P-2043 ULING ROASTERS 77.14 7/8/2016 P-2047 PARKWAY 16.56 9/29/2016 P-2628 LAVENDER SHELL SERVICE STATION AND GEN. MERCHADISE 18 1 "Exhibit "P-91-E", CTA Docket val. VI, pp. 3246-3278.~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 9/27/2016 P-2657 BOUNTY AGRO VENTURES INC 158.57 8/7/2016 P-3018 N & J HYDRAULIC HOSE INDUSTRIAL & HEAVY PARTS 77.14 8/9/2016 P-3726 JCN COPY & PRINTSHOP 37.5 Subtotal - 3rd Quarter 869.62 4th Quarter 11/4/2016 P-1510 PINKYYU 214.29 10/14/2016 P-1535 AKROASIA PETRON SERVICE STATION 107.14 12/20/2016 P-1864 DY TEBAN HARDWARE AND AUTO SUPPLY 96.43 11/15/2016 P-4251 BALIWAG LECHON MANOK INC 41.79 10/7/2016 P-4370 STAREV MOTORIST SERVICE CENTER 10.71 Subtotal - 4th Quarter 470.36 Total-Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where ft 3,115.24 amount of VA Table sale is not presented 2) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR wherein the VAT amount is not separately/properly indicated 1st Quarter 2/15/2016 P-1131 CEBU GAZLAND ENTERPRISES p 64.61 2/20/2016 P-1160 ROCO' S LECHON - - 321.43 1/22/2016 P-1238 COMTECH REFRIGERATION AND AIRCONDITIONING SERVICES - - 2,785.71 2/8/2016 P-1587 IRON CITY CALTEX STATION 2/19/2016 P-1744 COKALIONG SHIPPING LINES INC. 1-01.-79 3/3/2016 P-3409 ESPRUTINGKLE GAS & SERVICE INC -56.-25 Subtotal- 1st Quarter -11-.25 2nd Quarter GAC PHILIPPINES, INC. -3,341.04 5/20/2016 P-649 - 41,896.80 5/20/2016 P-651 GAC PHILIPPINES, INC. - - 2,185.39 JETT CONSTRUCTION AND ELECTRICAL SUPPLY -11.25 6/9/2016 P-1031 MANDAUE TRADE ENTER CEBU KIMLY MERCHANDISE - -3.75 4/14/2016 P-2803 GAC PHILIPPINES, INC. -42.-86 5/11/2016 P-3569 - - 44,140.05 Subtotal - 2nd Quarter -- 3rd Quarter 2,383.23 7/8/2016 P-671 8/12/2016 P-673 GAC PHILIPPINES, INC. 4,-644- .71 JETT CONSTRUCTION AND ELECTRICAL SUPPLY 8/26/2016 P-766 HONEYLEMON FOODS INC -53.-57 9/24/2016 P-2669 - - 12.11 Subtotal - 3rd Quarter 7,093.62 4th Quarter 10/21/2016 P-612 I TRIPLEPLAYHUB NETWORKS INC. 15,284.57 Subtotal - 4th Quarter 15,284.57 69 ' 859 �28 I Total-Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR wherein ft the VAT amount is not separately/property indicated 3) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR wherein indicated TIN is incorrect, incomplete or unreadable 4th Quarter 10/7/2016 P-748 GLOBAL SECURITY SOLUTIONS, INC. p 536.8 11/18/2016 I P-1781 I CITI HARDWARE BACOLOD INC 149.08 Subtotal - 4th Quarter 685.88 Total-Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR wherein ft 685.88 indicated TIN is incorrect, incomplete or unreadable CiJ I

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 4) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where the payor's name is incorrect, incomplete, or unreadable 1st Quarter 1/21/2016 P-744 RICHMONDE PLAZA CONDOMINIUM ASSOCIATION INC. fD 766.8 2/19/2016 P-661 GAC PHILIPPINES, INC. 1,356.26 2/2/2016 P-1073 GOODHOPE HARDWARE 38.04 2/5/2016 P-1086 GOODHOPE HARDWARE 19.29 2/8/2016 P-1096 ESPRUTINKLE GAS & SERVICES INC. 562.5 2/11/2016 P-1116 GOODHOPEHARDWARE 19.07 2/11/2016 P-1117 CEBU TRADECENTER INC. 35.25 2/12/2016 P-1126 GOODHOPEHARDWARE 306.43 2/13/2016 P-1127 ESPRUTINKLE GAS & SERVICES INC. 10.71 2/20/2016 P-1162 GOODHOPEHARDWARE 11.57 2/19/2016 P-1174 GOODHOPEHARDWARE 205.93 2/22/2016 P-1175 GOODHOPEHARDWARE 8.84 1/6/2016 P-1206 ESPRUTINGKLE GAS AND SERVICE INC 174.89 2/27/2016 P-1738 PHILIPPINE PORTS AUTHORITY 2.37 3/21/2016 P-2389 LAVENDER SHELL SERVICE STATION & GEN MEDSE. 139.24 3/22/2016 P-3352 K-BROTHERS LAYOUT & PRINT 37.5 2/24/2016 P-3437 DMC BUSA PRINTERS 514.29 2/26/2016 P-3450 GOODHOPEHARDWARE 192.86 2/28/2016 P-3458 ABACUS BOOK AND CARD CORP. 12.86 Subtotal- 1st Quarter 4,414.70 2nd Quarter 6/27/2016 P-901 SANFORD MARKETING CORPORATION 121.71 6/27/2016 P-906 ABACUSBOOKANDCARDCORP 12.86 6/28/2016 P-909 ESPRUTINGKLE GAS & SERVICE INC 1,101.23 6/30/2016 P-915 PHILIPPINES INC 267.86 6/20/2016 P-985 STK ELECTRONICS 1.61 5/30/2016 P-1033 CEBU TRADEEENTER INC 3 6/14/2016 P-2510 D MICHAEL CO INDUSTRIAL SUPPLY CORP. 160.71 6/14/2016 P-2592 LAVENDER SHELL SERVICE STATION & GEN MEDSE. 191.81 6/7/2016 P-2612 HIRAM ENTERPRISES 241.71 6/24/2016 P-3553 PETRON 53.57 5/13/2016 P-3659 MAYAD LIFE OIL CORPORATION 107.14 Subtotal - 2nd Quarter 2,263.21 3rd Quarter 8/27/2016 P-762 NEW VENTURES SHELL STATION 9.41 8/19/2016 P-801 ESPRUTINGKLE GAS & SERVICE INC 1,022.14 8/1/2016 P-817 ESPRUTINGKLE GAS & SERVICE INC 235.29 8/3/2016 P-825 PHILIPPINES INC 267.86 8/11/2016 P-832 SANFORD MARKETING CORPORATION 76.66 7/18/2016 P-862 PYEZA PARTS DEPOT INC 10.71 7/20/2016 P-864 GOODHOPEHARDWARE 8.57 7/11/2016 P-902 SANFORD MARKETING CORPORATION 43.37 7/29/2016 P-1924 B2Y'S AUTO SUPPLY AND GENERAL MERCHANDISE 217.5 CYJ

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 7/29/2016 P-1925 IRON CITY CALTEX STATION 261.96 7/29/2016 P-1943 TT & COMPANY, INC. 1,267.26 7/15/2016 P-1985 TT & COMPANY, INC. 1,091.24 7/1/2016 P-1993 CD-R KING GEN. MERCHANDISE 6.43 7/8/2016 P-2009 HIRAM ENTERPRISES 192.86 7/10/2016 P-2016 HONEYLEMON FOODS INC. 10.61 7/1/2016 P-2029 JOLLIBEE 16.07 7/8/2016 P-2049 PARKWAY 263.57 9/19/2016 P-2679 ULING ROASTERS 138.75 9/20/2016 P-2683 PIGAR TRADING 539.89 8/23/2016 P-2963 CLAVER GENERAL MERCHANDISE 24 8/12/2016 P-2987 TT & COMPANY, INC. 1,109.24 8/7/2016 P-2994 IRON CITY GROCERY 81.64 8/8/2016 P-3017 B2Y' S AUTO SUPPLY AND GENERAL MERCHANDISE 6.96 8/8/2016 P-3019 TRI-MIX ENTERPRISES 5.14 7/4/2016 P-3051 GRANDIOSA CORPORATION 110.25 9/2/2016 P-3180 NG KHAI DEVELOPMENT CORPORATION 246.43 9/7/2016 P-3196 ESPRUTINKLE GAS & SERVICES INC. 1,863.00 9/8/2016 P-3200 AEROPHONE ENTERPRISES & CO. 160.71 9/22/2016 P-3230 MANDAUE STAR OIL GAS & CONVENIENCE STORE 65.79 8/16/2016 P-3742 SUPERVALUEINC 22.45 7/21/2016 P-3829 SUPERVALUEINC 14.97 Subtotal - 3rd Quarter 9,390.73 4th Quarter 10/10/2016 P-1524 D.Y.M TRADING GENERAL MERCHANDISE 64.3 10/15/2016 P-1539 REPHIL BASAK INC. 21.43 10/16/2016 P-1540 ESPRUTINGKLE GAS & SERVICE INC. 186.42 10/20/2016 P-1553 ESPRUTINGKLE GAS & SERVICE INC. 1,222.71 I 10/21/2016 P-1554 CHERRY ROSE BUIDERS & CONSTRUCTION SUPPLY 69.64 10/6/2016 P-1569 MAPECON PHILIPPINES INC. 267.86 I 12/20/2016 P-1863 PATTYS BAKESHOP 21.43 10/16/2016 P-2113 CEBU HOME & BUILDERS CENTRE 203.81 I 10/3/2016 P-2182 IRON CITY CALTEX STATION 90 10/28/2016 P-3158 JAY C DESIGNS INC 99.11 10/28/2016 P-3159 NEW SEAMAN TRADE MARKETING COMMERCIAL INC 150 12/8/2016 P-4290 SML HABITAT CORPORATION 257.14 12/10/2016 P-4296 SML HABITAT CORPORATION 385.71 11/7/2016 P-4464 DHL EXPRESSCORP. 138.32 Subtotal - 4th Quarter 3,177.88 Total-Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where ~ 19,246.52 the payor's name is incorrect, incomplete, or unreadable 5) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where the business address is incorrect, incomplete, or unreadable 1st Quarter 3/17/2016 P-395 THE BELLEVUE MANILA p 1,640.79 2/16/2016 P-434 CITRA METRO MANILA TOLLWAYS CORPORATION 107.14 3/5/2016 P-492 AEROPHONE ENTERPRISES AND CO 107.14 -- - ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 2/19/2016 P-502 AEROPHONE ENTERPRISES AND CO 107.14 1/26/2016 P-1761 GLOBAL SECUIRTY SOLUTIONS INC. 341.51 2/19/2016 P-659 GAC PHILIPPINES, INC. 1,882.96 2/19/2016 P-665 GAC PHILIPPINES, INC. 1,842.06 2/19/2016 P-667 GAC PHILIPPINES, INC. 1,897.56 2/2/2016 P-1076 GRANDRESTO INC. 629.21 2/3/2016 P-1078 CEBU ATLANTIC HARDWARE 629.46 2/4/2016 P-1083 DMC BUSA PRINTERS 535.71 2/9/2016 P-1097 NATIONAL BOOK STORE 117.38 2/9/2016 P-1100 PACIFIC CATV, INC 133.93 2/10/2016 P-1115 CEBU ATLANTIC HARDWARE 911.63 2/15/2016 P-1129 CAV AUTO OPTIONS INC. 162.51 2/15/2016 P-1133 GOODHOPEHARDWARE 564.27 2/16/2016 P-1135 LANTAW SEAFOOD & GRILL INC. 251.25 2/23/2016 P-1177 SUPER SHOPPING MARKET, INC 557.14 2/19/2016 P-1178 MACRO TIRES, INC. 895.71 1/9/2016 P-1182 GOODHOPEHARDWARE 1/13/2016 P-1185 GOODHOPEHARDWARE 310.4 1/14/2016 P-1199 SANFORD MARKETING CORPORATION 116.58 1/13/2016 P-1200 GOODHOPEHARDWARE 115.15 1/14/2016 P-1211 ESPRUTINGKLE GAS AND SERVICE INC 107.15 1/15/2016 P-1216 JV SHOP N SHOP CO 161.96 1/12/2016 P-1223 PACIFIC CATV INC 107.14 1/20/2016 P-1230 PACIFIC CATV INC 133.82 1/25/2016 P-1245 GOODHOPEHARDWARE 214.71 1/28/2016 P-1251 GOODHOPEHARDWARE 217.82 1/26/2016 P-1253 GOODHOPEHARDWARE 139.23 2/1/2016 P-1263 I.C.E.D. PETRON SERVICE STATION 1/7/2016 P-1370 PARKWAY 121.5 1/16/2016 P-1375 SURIGAO M.S. ENTERPRISES 149.97 1/17/2016 P-1382 IRON CITY CALTEX STATION 132.79 1/19/2016 P-1386 B2YS AUTO SUPPLY AND GENERAL MERCHANDISE 482.14 1/19/2016 P-1389 IRON CITY CALTEX STATION 107.14 1/9/2016 P-1392 CEBU BELMONT INC 530.89 1/9/2016 P-1394 THINKING TOOLS INCORPORATED 107.14 1/14/2016 P-1405 IRON CITY CALTEX STATION 302.68 1/22/2016 P-1415 TRIMIX ENTERPRISES 1/25/2016 P-1431 IRON CITY CALTEX STATION 757.5 1/29/2016 P-1433 NEW MINDANAO HARDWARE AND AUTO PARTS SUPPLIES 107.14 1/29/2016 P-1434 HONEYLEMON FOODS INC 109.28 1/22/2016 P-1453 MOTHERS CHOICE SURIGAO INC 107.14 2/1/2016 P-1570 IRON CITY CALTEX STATION 252.86 I 2/1/2016 P-1571 MOTHERS CHOICE SURIGAO INC 116.78 2/3/2016 P-1573 MOTHERS CHOICE SURIGAO INC 172.45 2/3/2016 P-1572 MOTHERS CHOICE SURIGAO INC 107.14 165.64 -- 525.53 166.07 o/

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 2/3/2016 P-1575 IRON CITY CALTEX STATION 107.14 2/9/2016 P-1590 IRON CITY CALTEX STATION 107.14 2/12/2016 P-1593 IRON CITY CALTEX STATION 107.14 2/12/2016 P-1595 MOTHERS CHOICE SURIGAO INC 123.42 2/13/2016 P-1602 SAINT PETER DIAGNOSTIC AND LABORATORY 1,425.54 2/14/2016 P-1625 IRON CITY CALTEX STATION 107.14 2/17/2016 P-1654 CARTECH ENTERPISE 567.86 2/18/2016 P-1657 IRON CITY CALTEX STATION 107.14 2/18/2016 P-1658 TT & COMPANY INC. 192.21 2/18/2016 P-1660 WINSHER MARKETING 685.18 1/29/2016 P-1678 MOTHERS CHOICE SURIGAO INC 343.61 2/21/2016 P-1695 EMB NATURAL GAS STATION 139.29 2/22/2016 P-1701 IRON CITY CALTEX STATION 211.71 2/26/2016 P-1706 SURIGAO M.S ENTERPRISE 482.14 2/26/2016 P-1707 D MICHAEL CO INDUSTRIAL SUPPLY CORP. 241.07 2/18/2016 P-1709 TT & COMPANY INC. 1,653.78 2/18/2016 P-1712 MOTHERS CHOICE SURIGAO INC 1,320.91 2/18/2016 P-1714 TAl-PAN DEVELOPMENT INC 133.62 2/18/2016 P-1715 MOTHERS CHOICE SURIGAO INC 138.64 2/24/2016 P-1722 ULING ROASTERS 115.71 2/26/2016 P-1727 TT & COMPANY INC. 937.92 2/26/2016 P-1728 MOTHERS CHOICE SURIGAO INC 235.52 3/23/2016 P-2374 MOTHERS CHOICE SURIGAO INC 330.6 3/23/2016 P-2377 TT & COMPANY INC. 918.01 3/23/2016 P-2380 TT & COMPANY INC. 369.64 3/31/2016 P-2382 TT & COMPANY INC. 939.62 3/31/2016 P-2385 MOTHERS CHOICE SURIGAO INC 263.2 3/31/2016 P-2387 TAl-PAN DEVELOPMENT INC 162.71 3/26/2016 P-2391 IRON CITY CALTEX STATION 116.98 3/28/2016 P-2392 IRON CITY CALTEX STATION 107.14 3/18/2016 P-2396 TT & COMPANY INC. 1,040.07 3/18/2016 P-2397 MOTHERS CHOICE SURIGAO INC 615.5 3/18/2016 P-2401 PARKWAY 883.44 3/8/2016 P-2416 TT & COMPANY INC. 641.25 3/18/2016 P-2419 SILICON VALLEY 861.43 3/11/2016 P-2450 MOTHERS CHOICE SURIGAO INC 833.67 3/4/2016 P-2485 TAl-PAN DEVELOPMENT INC 105.14 3/31/2016 P-3323 ESPRUTINGKLE GAS & SERVICE INC 187.5 3/30/2016 P-3364 PACIFIC CATV INC 133.93 3/19/2016 P-3372 K-BROTHERS LAYOUT & PRINT 112.5 3/23/2016 P-3375 K AND S HOTEL & MANAGEMENT CORPORATION 176.79 I 3/22/2016 P-3376 K AND S HOTEL & MANAGEMENT CORPORATION 353.57] 3/8/2016 P-3385 GOODHOPEHARDWARE 795.86 I 3/9/2016 P-3388 SUPER SHOPPING MARKET INC 209.33 3/10/2016 P-3390 AEROPHONE ENTERPRISES & CO (If 107.1..:1 i --

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 3/1/2016 P-3408 GOODHOPEHARDWARE 409.39 ESPRUTINGKLE GAS & SERVICE INC 865.93 i 3/7/2016 P-3422 ACE HARDWARE PHILIPPINES INC 374.87 40,859.28 3/7/2016 P-3430 TRAVELBEE MANAGEMENT CORPORATION TRAVELBEE MANAGEMENT CORPORATION I Subtotal - 1st Quarter THE BELLEVUE MANILA THE BELLEVUE MANILA 324 I 2nd Quarter PETRON XPRESSFILLSTATION 1,259.14 PETRON XPRESSFILLSTATION 4,107.21 6/19/2016 P-364 PETRON XPRESSFILLSTATION 1,302.63 I CITRA METRO MANILA TOLLWAYS CORPORATION 6/24/2016 P-365 GLOBAL SECUIRTY SOLUTIONS INC. 123.82 I GLOBAL SECUIRTY SOLUTIONS INC. 123.07 5/22/2016 P-390 PEAR ENTERPRISES 119.37 MOTHER'S CHOICE SURIGAO INC. 214.29 4/17/2016 P-392 MOTHER'S CHOICE SURIGAO INC. 308.53 PARKWAY 668.85 6/3/2016 P-420 IRON CITY CALTEX STATION 35,235.00 IRON CITY CALTEX STATION 309.65 4/1/2016 P-428 GARDENSTATE ENTERPRISES, INC. 118.34 TOYOTA BUTUAN CITY 139.88 4/1/2016 P-429 PARKWAY 107.14 MOTHER'S CHOICE SURIGAO INC. 107.14 4/1/2016 P-430 MOTHER'S CHOICE SURIGAO INC. 179.79 MOTHER'S CHOICE SURIGAO INC. 4/13/2016 P-4787 IRON CITY CALTEX STATION 136.6 IRON CITY CALTEX STATION 222.79 4/13/2016 P-4789 IRON CITY CALTEX STATION 307.53 IRON CITY CALTEX STATION 106.34 6/22/2016 P-587 IRON CITY CALTEX STATION 318.98 IRON CITY CALTEX STATION 107.14 5/27/2016 P-2852 SAINT PETER DIAGNOSTIC AND LABORATORY 107.14 IRON CITY CALTEX STATION 858.75 5/27/2016 P-2854 TT AND COMPANY INC 107.14 TT AND COMPANY INC 107.14 5/27/2016 P-2857 MOTHERS CHOICE SURIGAO INC 107.14 TT AND COMPANY INC 273.21 5/22/2016 P-2861 CLYBROS MERCHANDISING INC 113.12 MOTHERS CHOICE SURIGAO INC 731.44 5/24/2016 P-2864 MOTHERS CHOICE SURIGAO INC 960.95 TT AND COMPANY INC 131.44 5/26/2016 P-2867 CLYBROS MERCHANDISING INC 800.54 NEW SURIGAO PAINTHAUS AND AUTOPARTS GEN 165.12 5/26/2016 P-2869 MERCHANDISE 342.43 293.43 5/20/2016 P-2882 891.89 120.35 5/20/2016 P-2883 107.15 5/20/2016 P-2885 (tl) 5/20/2016 P-2886 4/16/2016 P-3058 4/9/2016 P-3061 4/18/2016 P-3062 4/22/2016 P-3071 4/25/2016 P-3073 4/28/2016 P-3076 4/23/2016 P-3078 4/14/2016 P-3094 4/22/2016 P-3104 4/30/2016 P-3112 4/30/2016 P-3116 4/9/2016 P-3125 4/9/2016 P-3126 4/9/2016 P-3129 4/14/2016 P-3133 4/14/2016 P-3135 4/14/2016 P-3136 4/5/2016 P-3141 -- --

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 4/4/2016 P-3327 COMTECH REFRIGERATION & AIRCONDITIONING SERVICES 401.79 4/4/2016 P-3328 OCTAGON COMPUTER SUPERSTORE 266.14 6/10/2016 P-4401 GAC PHILIPPINES INC 4,835.19 Subtotal - 2nd Quarter 57,668.73 3rd Quarter EJS GARDEN BY THE BAY 8/30/2016 P-404 PETRON XPRESSFILLSTATION 380.36 8/10/2016 P-410 BATTERY MASTER'S INC 126.22 8/13/2016 P-411 LINCOLN REALTY CORP. 616.07 9/15/2016 P-571 PRIVIS CORPORATION 3,214.29 8/20/2016 P-755 SANFORD MARKETING CORPORATION 130.18 8/24/2016 P-758 375 CAR SPECIALIST 165.72 9/16/2016 P-2694 OCTAGON COMPUTER SUPERSTORE 2,294.89 9/24/2016 P-3232 PACIFIC CATV, INC 425.89 9/26/2016 P-3240 CEBGO, INC. 7/1/2016 P-4136 FRESH N FAMOUS FOODS INC 142.5 9/26/2016 P-4334 107.14 Subtotal - 3rd Quarter TRAVELBEE MANAGEMENT CORPORATION 4th Quarter TRAVELBEE MANAGEMENT CORPORATION 17.14 11/26/2016 P-361 TRAVELBEE MANAGEMENT CORPORATION 7,620.40 11/26/2016 P-362 GRANDESTOINC 11/27/2016 P-363 GRANDESTO INC 360 12/5/2016 P-448 UY AND DE GUZMAN LAW OFFICES 1,080.00 12/5/2016 P-449 GLOBAL SECUIRTY SOLUTIONS INC. 10/13/2016 P-462 PEAR ENTERPRISES 180 12/20/2016 P-746 PEAR ENTERPRISES 599.25 10/18/2016 P-575 PEAR ENTERPRISES 12/21/2016 P-579 PEAR ENTERPRISES 85.61 11/17/2016 P-580 FRONTLAKE INC 4,800.00 11/7/2016 P-581 SANFORD MARKETING CORPORATION 11/22/2016 P-1460 ROBINSONS SUPERMARKET CORPORATION 536.8 11/22/2016 P-1462 ROBINSONS SUPERMARKET CORPORATION 141,360.00 11/23/2016 P-1467 ROBINSONS SUPERMARKET CORPORATION 214,800.00 11/23/2016 P-1468 ESPRUTINGKLE GAS AND SERVICE INC 195,300.00 11/23/2016 P-1469 SANFORD MARKETING CORPORATION 11/26/2016 P-1477 ALAIN ASIA TRADING CORPORATION 80,212.50 11/16/2016 P-1495 ESPRUTINGKLE GAS AND SERVICE INC 184.18 11/18/2016 P-1498 ROBINSONS INCORPORATED 195.59 11/19/2016 P-1499 GOLDEN COWRIE HUKAD NATIVE RESTAURANT 140.99 11/19/2016 P-1500 ESPRUTINGKLE GAS AND SERVICE INC 119.14 11/5/2016 P-1512 GRANDRESTOINC 230.36 11/5/2016 P-1513 SANFORD MARKETING CORP 10/7/2016 P-1522 NISSAN CEBU DISTRIBUTORS INC. 2,241.00 10/13/2016 P-1525 ACE HARDWARE PHILIPPINES INC 212.97 10/15/2016 P-1538 169.29 . 10/18/2016 P-1547 214.29 133.1 147.21 2,317.50 428.04 158.38 1,555.29 819.4 ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 12/28/2016 P-1847 DY TEBAN HARDWARE AND AUTO SUPPLY 167.14 12/18/2016 P-1860 HUKAD BUTUAN 130.61 11/4/2016 P-2232 SURIGAONON VISAYAN MARKETING CORPORATION 155.36 11/11/2016 P-2239 SURIGAONON VISAYAN MARKETING CORPORATION 155.36 10/26/2016 P-3155 PACIFIC CATV INC 142.5 10/27/2016 P-3156 FAMILYHEALTH AND BEAUTY CORP 135.59 12/8/2016 P-3280 CHOOBI CHOOBI FLAVORS CORPORATION 108.64 12/14/2016 P-3292 GOLDEN COWRIE HUKAD NATIVE RESTAURANT 201.75 11/30/2016 P-3300 PARILYA SOUTH SEAFOOD AND GRILL 154.82 11/14/2016 P-4236 SUPERVALUEINC 106.55 11/18/2016 P-4243 MAGALLANES MANAGEMENT CORPORATION 201.8 12/10/2016 P-4279 PIGAR TRADING 330.64 12/9/2016 P-4295 SANFORD MARKETING CORPORATION 266.22 10/17/2016 P-4389 CEBU PORT AUTHORITY 107.88 Subtotal - 4th Quarter 650,945.75 Total - Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where p 757,094.16 the business address is incorrect, incomplete, or unreadable 6) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where either there is no indicated business style or the indicated business style is incorrect 1st Quarter 1/26/2016 P-397 GORGEOUS FOODS INC p 486.68 1/15/2016 P-444 PETRON XPRESSFILLSTATION 121.28 2/25/2016 P-454 TRAVELBEE MANAGEMENT CORPORATION 531.43 3/3/2016 P-491 ABACUSBOOKANDCARDCORP 240 2/10/2016 P-500 GORGEOUS FOODS INC 175.06 2/17/2016 P-541 PLDTINC 756.26 2/18/2016 P-743 RICHMONDE PLAZA CONDOMINIUM ASSOCIATION INC. 766.8 1/15/2016 P-4792 GLOBAL SECUIRTY SOLUTIONS INC. 341.51 3/1/2016 P-607 INNOVE COMMUNICATIONS, INC. 752.99 2/16/2016 P-636 D. MICHAEL CO INDUSTRIAL SUPPLY (DMC) CORP 1,285.71 3/22/2016 P-658 GAC PHILIPPINES, INC. 38,069.40 2/19/2016 P-663 GAC PHILIPPINES, INC. 1,416.00 1/25/2016 P-669 GAC PHILIPPINES, INC. 1,724.00 2/26/2016 P-3252 TT & COMPANY INC. 937.92 3/4/2016 P-2461 K-3 CENTERPOINT 168.32 3/4/2016 P-2465 MOTHERS CHOICE SURIGAO INC 170.21 3/4/2016 P-2477 TT & COMPANY INC. 1,521.39 3/4/2016 P-3415 SILICON VALLEY 166.08 3/7/2016 P-3431 PACIFIC CATV INC 142.5 2/26/2016 P-3785 TRAVELBEE 648 3/1/2016 P-3795 SUPERVALUEINC 149.67 Subtotal- 1st Quarter 50,571.21 2nd Quarter 6/20/2016 P-387 CEBU GOLDEN RESTAURANT INC 254.68 i 4/15/2016 P-737 RICHMONDE PLAZA CONDOMINIUM ASSOCIATION INC. 766.8 6/17/2016 P-4781 GLOBAL SECUIRTY SOLUTIONS INC. 323.64 5/31/2016 P-4783 GLOBAL SECUIRTY SOLUTIONS INC. 675.32 - ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 5/6/2016 P-4785 GLOBAL SECUIRTY SOLUTIONS INC. 323.64 6/13/2016 P-604 INNOVE COMMUNICATIONS, INC. 448.28 4/28/2016 P-605 INNOVE COMMUNICATIONS, INC. 390.42 4/18/2016 P-606 INNOVE COMMUNICATIONS, INC. 404.35 6/10/2016 P-647 GAC PHILIPPINES, INC. 12,720.00 4/15/2016 P-652 GAC PHILIPPINES, INC. 4,726.87 4/15/2016 P-653 GAC PHILIPPINES, INC. 1,497.25 4/15/2016 P-656 GAC PHILIPPINES, INC. 2,889.00 4/15/2016 P-657 GAC PHILIPPINES, INC. 2,296.43 6/1/2016 P-589 PEAR ENTERPRISES 70,470.00 6/28/2016 P-911 SANFORD MARKETING CORPORATION 289.37 6/30/2016 P-917 GOODHOPE HARDWARE 132.59 6/22/2016 P-955 ULTIMA RESIDENCES CONDOMINIUM CORPORATION 6/22/2016 P-958 PACIFIC CATV INC 439.5 6/21/2016 P-959 CHIKA-AN SA CEBU RESTAURANT 256.5 6/16/2016 P-963 ACE HARDWARE PHILIPPINES INC 292.39 6/19/2016 P-976 TRAVELBEE 259.68 6/24/2016 P-977 TRAVELBEE 478.29 6/24/2016 P-980 PRIVIS CORPORATION 239.14 6/18/2016 P-996 CEBU PRIMEGRILL CORP 308.04 5/24/2016 P-1014 EJ'S GARDEN BY THE BAY 200.89 6/9/2016 P-1015 GRANDRESTO INC 514.29 6/10/2016 P-1016 HARRISON MILLER SCHWARTZ CORP 513.64 6/3/2016 P-1018 PACIFIC CATV INC 107.14 6/3/2016 P-1019 ULTIMA RESIDENCES CONDOMINIUM CORPORATION 267.32 6/8/2016 P-1026 GOODHOPEHARDWARE 687.3 5/30/2016 P-1032 GOODHOPEHARDWARE 203.57 5/26/2016 P-1046 SANFORD MARKETING CORPORATION 174.11 6/6/2016 P-1047 THE FIRST FAMILY APPLIANCE CIRCLE CORP 134.33 6/6/2016 P-1049 AKROASIA PETRON SERVICE STATION 3,132.75 � 6/7/2016 P-1060 GOODHOPEHARDWARE 214.29 6/6/2016 P-1065 GOODHOPEHARDWARE 599.46 6/14/2016 P-1069 PAGES HOLDINGS INC 327.32 4/7/2016 P-1296 CHOWKING 169.82 4/7/2016 P-1301 JOLLIBEE MCIAA 218.79 5/3/2016 P-1359 DUNKIN DONUTS 150.64 5/3/2016 P-1361 ROBINSONS SUPERMARKET CORPORATION 192.86 5/2/2016 P-2287 TAALEI\JA RESORTS CORPORATION 191.79 5/5/2016 P-2290 AEROPHONE ENTERPRISES & CO. 161.79 4/25/2016 P-2291 AEROPHONE ENTERPRISES & CO. 107.14 5/6/2016 P-2294 SANFORD MARKETING CORPORATION 107.14 5/10/2016 P-2298 ESPRUTINGKLE GAS & SERVICE INC. 157.61 5/7/2016 P-2305 MANDAUE FOAM INDUSTRIES INC. 168.23 5/11/2016 P-2312 PACIFIC CATV, INC. 3,185.09 5/16/2016 P-2314 ESPRUTINGKLE GAS & SERVICE INC. ,267.32 - 179.05

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 5/13/2016 P-2315 GRANDRESTO INC 342.43 5/17/2016 P-2319 PRIME CARE CEBU 150 5/23/2016 P-2335 COKALING SHIPPING LINES, INC 5/17/2016 P-2346 ESPRUTINGKLE GAS & SERVICE INC. 1,075.88 5/6/2016 P-2370 VARLIZON, INC 1,039.50 6/29/2016 P-2491 IRON CITY CALTEX STATION 6/17/2016 P-2507 IRON CITY CALTEX STATION 107.14 6/17/2016 P-2537 MOTHERS CHOICE SURIGAO INC 200.89 6/17/2016 P-2538 MOTHERS CHOICE SURIGAO INC 167.14 6/17/2016 P-2545 TI & COMPANY INC. 151.07 6/24/2016 P-2549 MOTHERS CHOICE SURIGAO INC 110.36 6/24/2016 P-2551 MOTHERS CHOICE SURIGAO INC 954.62 6/10/2016 P-2568 MOTHERS CHOICE SURIGAO INC 144.64 6/10/2016 P-2571 MOTHERS CHOICE SURIGAO INC 171.54 6/10/2016 P-2583 IRON CITY CALTEX STATION 188.89 6/24/2016 P-2584 TI & COMPANY INC. 484.93 6/2/2016 P-2595 B2Y'S AUTO SUPPLY & GENERAL MERCHANDISE 214.29 6/2/2016 P-2596 B2Y'S AUTO SUPPLY & GENERAL MERCHANDISE 853.74 6/7/2016 P-2614 SURIGAO FAIR TRADE 139.29 4/22/2016 P-2761 THE BELLEVUE MANILA 139.29 4/20/2016 P-2765 PACIFIC CATV INC. 381.86 4/20/2016 P-2766 PACIFIC CATV INC. 194.36 4/21/2016 P-2769 VESCORP BUSINESS OFFICE & SCHOOL SUPPLIES 133.93 4/7/2016 P-2777 NATIONAL BOOK STORE 406.07 4/6/2016 P-2797 NEWSAN TRADING LTD. CO. 146.25 4/19/2016 P-2799 NEWSAN TRADING LTD. CO. 4/15/2016 P-2802 ESPRUTINGKLE GAS & SERVICE INC. 706.9 4/18/2016 P-2806 VESCORP BUSINESS OFFICE & SCHOOL SUPPLIES 2,271.21 5/28/2016 P-2807 IRON CITY CALTEX STATION 1,012.50 5/31/2016 P-2809 CENTERPOINT PETRON STATION 5/14/2016 P-2887 IRON CITY CALTEX STATION 180.54 5/17/2016 P-2890 IRON CITY CALTEX STATION 502.5 I 5/20/2016 P-2891 IRON CITY CALTEX STATION 255 5/4/2016 P-2892 IRON CITY CALTEX STATION 5/5/2016 P-2893 IRON CITY CALTEX STATION 159.43 5/7/2016 P-2897 IRON CITY CALTEX STATION 107.14 5/6/2016 P-2901 MOTHER'S CHOICE SURIGAO INC. 124.25 5/6/2016 P-2902 MOTHER'S CHOICE SURIGAO INC. 127.29 5/6/2016 P-2903 TI & COMPANY, INC. 107.14 5/6/2016 P-2904 MOTHER'S CHOICE SURIGAO INC. 107.14 5/12/2016 P-2907 TT & COMPANY, INC. 159.96 4/22/2016 P-3098 MOTHERS CHOICE SURIGAO INC 175.76 5/18/2016 P-3570 SUPERVALUE, INC. 304.18 5/23/2016 P-3607 PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 720.81 4/30/2016 P-3634 SUPERVALUE INC 120.92 774.89 -------- 151.75 111.99 360 115.04 ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 4/6/2016 P-4018 TOYOTA PASIG 296.35 ORIENTAL PORT AND ALLIED SERVICES CORP 1,237.08 6/6/2016 P-4396 ORIENTAL PORT AND ALLIED SERVICES CORP 181.92 6/6/2016 P-4397 WATERFRONT AIRPORT HOTEL AND CASINO 131,485.66 CITRA MERTO MANILA TOLLWAYS CORPORATION Subtotal - 2nd Quarter BRYON INDUSTRIAL SALES & SERVICES 728.57 PLOT INC 214.29 3rd Quarter PLOT INC 1,836.00 RICHMONDE PLAZA CONDOMINIUM ASSOCIATION INC. 795.93 9/19/2016 P-380 GLOBAL SECUIRTY SOLUTIONS INC. 756.26 INNOVE COMMUNICATIONS, INC. 8/9/2016 P-408 PEAR ENTERPRISES 766.8 PEAR ENTERPRISES 541.99 8/10/2016 P-3254 PEAR ENTERPRISES 1,029.42 GLOBE TELECOM INC. 167,460.00 8/16/2016 P-531 ALAIN ASIA TRADING CORPORATION 47,280.00 TRAVELBEE 83,700.00 7/18/2016 P-532 PACIFIC CATV INC 3,238.06 !KITCHEN INC 169.29 7/18/2016 P-734 WELL LOVED SEAFOOD HARVEST INC 956.57 NISSAN CEBU DISTRIBUTORS INC 7/15/2016 P-4777 THE FIRST FAMILY APPLIANCE CIRCLE CORP 142.5 ACE HARDWARE PHILIPPINES INC 209.84 9/23/2016 P-601 GOODHOPEHARDWARE 116.79 VINUTECH DIGITAL CORP 504.11 9/30/2016 P-576 PACIFIC CATV INC 1,403.57 AKROASIA PETRON SERVICE STATION 130.07 8/27/2016 P-578 PYEZA PARTS DEPOT INC 126.16 ACE HARDWARE PHILIPPINES INC 385.71 8/11/2016 P-583 AKROASIA PETRON SERVICE STATION SANFORD MARKETING CORPORATION 142.5 9/20/2016 P-353 ULTIMA RESIDENCES CONDOMINIUM CORPORATION 190.12 � ALAIN ASIA TRADING CORPORATION 365.89 8/27/2016 P-768 DHL EXPRESS (PHILIPPINES) CORP 149.97 AKROASIA PETRON SERVICE STATION 177.62 8/19/2016 P-805 ACE HARDWARE PHILIPPINES INC 133.23 THE FIRST FAMILY APPLIANCE CIRCLE CORP 8/20/2016 P-808 GOODHOPEHARDWARE 159 AEROPHONE ENTERPRISES & CO 212.14 8/2/2016 P-823 SURIGAO M.S. ENTERPRISES 468.01 TT & COMPANY, INC. 205.83 7/31/2016 P-824 TRI-MIX ENTERPRISES 139.23 SURIGAO GLASSMASTER 1,606.61 8/9/2016 P-826 165.54 107.14 8/10/2016 P-834 133.93 1,003.40 8/9/2016 P-835 303.21 160.71 8/8/2016 P-837 fl] 8/11/2016 P-839 7/29/2016 P-860 7/20/2016 P-867 7/21/2016 P-873 7/27/2016 P-887 7/27/2016 P-888 7/22/2016 P-891 7/4/2016 P-898 7/8/2016 P-904 7/1/2016 P-927 7/12/2016 P-929 7/13/2016 P-932 7/14/2016 P-938 7/15/2016 P-940 7/6/2016 P-948 7/29/2016 P-1922 7/22/2016 P-1968 7/8/2016 P-2004 7/8/2016 P-2005

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 7/8/2016 P-2010 DMC 289.29 SOLARIS GAS SERVICE STATION 195.21 7/7/2016 P-2012 K3CP CORPORATION 131.14 TT & COMPANY, INC. 910.99 7/11/2016 P-2019 WINSHER MARKETING 220.71 TT & COMPANY, INC. 1,519.48 7/1/2016 P-2023 MOTHERS CHOICE SURIGAO INC MOTHER'S CHOICE SURIGAO INC. 833.6 7/1/2016 P-2031 TT & COMPANY, INC. 459.02 MOTHER'S CHOICE SURIGAO INC. 1,057.15 7/8/2016 P-2048 CITI HARDWARE BACOLOD, INC. 471.21 IRON CITY CALTEX STATION 183.29 9/25/2016 P-2646 LAVENDER SHELL SERVICE STATION & GEN. MDSE. 205.71 TT & COMPANY, INC. 107.14 8/19/2016 P-2956 MOTHER'S CHOICE SURIGAO INC. 1,225.62 MOTHER'S CHOICE SURIGAO INC. 346.07 8/19/2016 P-2958 MOTHER'S CHOICE SURIGAO INC. 109.29 ROBINSONS SELECTIONS 257.56 8/12/2016 P-2983 AKROASIA PETRON SERVICE STATION 259.18 AKROASIA PETRON SERVICE STATION 197.59 8/3/2016 P-3000 AMICUS CATERING SERVICES & SUPPLIES 185.29 CEBU AIR, INC 1,989.64 8/6/2016 P-3008 PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 278.57 !KITCHEN INC 8/10/2016 P-3022 DHL EXPRESS 180 RED PLANET HOTELS ORTIGAS CORPORATION 308.57 8/5/2016 P-3030 ACCENT MICRO PRODUCTS INC 124.82 PRIME ARCH CREATIVE RESTAURANTS INCORPORATED 870.42 8/5/2016 P-3036 JOLLIBEE ROBINSONS PALAWAN 1,446.43 DHL EXPRESSCORP. 107.57 8/5/2016 P-3037 GAL CO 141.75 124.82 8/5/2016 P-3038 1,502.95 334,556.09 9/10/2016 P-3206 549.82 9/14/2016 P-3211 1,084.96 9/27/2016 P-3238 867.14 1,192.07 7/25/2016 P-3593 843.21 8/11/2016 P-3600 259.74 259.74 8/8/2016 P-3603 3,214.29 3,214.29 8/10/2016 P-3720 163.25 206.09 8/3/2016 P-3722 589.29 7/20/2016 P-3822 ~ 9/30/2016 P-4081 7/4/2016 P-4141 7/4/2016 P-4143 9/8/2016 P-4198 9/16/2016 P-4394 Subtotal - 3rd Quarter 4th Quarter 11/18/2016 P-450 PHILIPPINE AIRLINES 10/19/2016 P-451 PHILIPPINE AIRLINES 10/14/2016 P-452 PHILIPPINE AIRLINES 10/3/2016 P-534 PLOT INC 10/13/2016 P-546 NEWSAN TRADING LTO. CO 11/23/2016 P-750 GLOBAL SECUIRTY SOLUTIONS INC. 11/11/2016 P-752 GLOBAL SECUIRTY SOLUTIONS INC. 10/15/2016 P-572 LINCOLN REALTY CORP. 11/17/2016 P-573 LINCOLN REALTY CORP. 11/24/2016 P-1471 NEW VENTURES SHELL STATION 11/10/2016 P-1491 AKROASIA PETRON SERVICE STATION 12/5/2016 P-1768 REDO MOBILE MARKETING ---

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 12/2/2016 P-1800 MOTHERS CHOICE SURIGAO INC 114.21 12/2/2016 P-1801 MOTHERS CHOICE SURIGAO INC 130.18 12/2/2016 P-1802 MOTHERS CHOICE SURIGAO INC 385.42 12/2/2016 P-1803 TT AND COMPANY INC 666.37 12/9/2016 P-1809 TT AND COMPANY INC 1,293.81 12/9/2016 P-1812 MOTHERS CHOICE SURIGAO INC 441.88 12/16/2016 P-1834 MOTHERS CHOICE SURIGAO INC 133.39 12/16/2016 P-1836 MOTHERS CHOICE SURIGAO INC 111.43 12/16/2016 P-1837 MOTHERS CHOICE SURIGAO INC 392.26 12/16/2016 P-1841 TT AND COMPANY INC 982.88 12/17/2016 P-1857 K3CP CORPORATION 145.39 12/23/2016 P-1880 MOTHERS CHOICE SURIGAO INC 258.06 12/23/2016 P-1883 TT AND COMPANY INC 522.79 12/30/2016 P-1893 ROBINSONS SUPERMARKET CORPORATION 674.96 10/14/2016 P-2120 MOTHER'S CHOICE SURIGAO INC. 317.92 10/14/2016 P-2122 MOTHER'S CHOICE SURIGAO INC. 447.37 10/14/2016 P-2125 TT & COMPANY, INC. 1,351.99 10/11/2016 P-2142 NEW SURIGAO PAINTHAUS & AUTOPARTS GEN. MERCHANDISE 535.71 10/11/2016 P-2144 B2Y'S AUTO SUPPLY AND GENERAL MERCHANDISE 160.71 10/13/2016 P-2149 K3CP CORPORATION 119.36 10/7/2016 P-2160 MOTHER'S CHOICE SURIGAO INC. 536.32 10/7/2016 P-2161 MOTHER'S CHOICE SURIGAO INC. 308.61 10/7/2016 P-2162 MOTHER'S CHOICE SURIGAO INC. 156.43 10/7/2016 P-2163 TT & COMPANY, INC. 1,364.58 10/2/2016 P-2180 PARKWAY 392.72 10/6/2016 P-2188 REDO MOBILE MARKETING 492.86 10/1/2016 P-2198 ROBINSON'S SUPERMARKET CORPORATION 1,139.90 11/4/2016 P-2216 TT & COMPANY, INC 992.65 11/21/2016 P-2252 B2Y'S AUTO SUPPLY & GENERAL MERCHANDISE 2,229.64 11/18/2016 P-2260 TT & COMPANY, INC 928.13 11/18/2016 P-2261 MOTHERS CHOICE SURIGAO INC 629.44 11/29/2016 P-2272 SURIGAO MEDICAL CENTER INC.- PHARMACY 129.56 11/25/2016 P-2277 MOTHERS CHOICE SURIGAO INC 458.01 11/25/2016 P-2280 TT & COMPANY, INC 810.05 12/16/2016 P-3481 CEBU AIR, INC 172.92 10/3/2016 P-4087 CITRA METRO MANILA TOLLWAYS CORPORATION 107.14 11/14/2016 P-4242 SUPERGAS MEGA GAS STATION 170.63 11/18/2016 P-4262 CK OF ASIA INC 76.87 12/4/2016 P-4269 ROBINSON'S DEPARTMENT STORE-BUTUAN 192.86 12/4/2016 P-4271 ROBINSON'S DEPARTMENT STORE-BUTUAN 385.71 12/4/2016 P-4272 ROBINSON'S DEPARTMENT STORE-BUTUAN 412.5 12/4/2016 P-4273 ROBINSON'S DEPARTMENT STORE-BUTUAN 2,035.71 12/9/2016 P-4274 BENCH BOUTIQUE 136.74 12/9/2016 P-4278 TT & COMPANY, INC. 224.76 12/15/2016 P-4287 PARKWAY 139.33 (11

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 12/8/2016 P-4291 SUPERVALUE, INC. 267.27 12/8/2016 P-4293 THE SM STORE 861.27 12/9/2016 P-4294 ROBINSON'S SUPERMARKET CORPORATION 176.21 12/13/2016 P-4307 V.C.M. TRADING 241.07 10/11/2016 P-4383 J CO DONUTS AND COFFEE 107.68 10/14/2016 P-4384 GAC PHILIPPINES INC 39,000.00 10/14/2016 P-4385 GAC PHILIPPINES INC 17,520.00 10/14/2016 P-4392 GAC PHILIPPINES INC 1,786.79 10/6/2016 P-4400 CEBU PORT AUTHORITY 218.88 12/2/2016 P-4402 GAC PHILIPPINES INC 7,632.11 10/18/2016 P-4425 CUBIXOFFICE 187.5 Subtotal - 4th Quarter 104,252.83 Total-Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where p 620,865.79 either there is no indicated business style or the indicated business style is incorrect 7) Input VAT on domestic purchase of goods/services supported by a document with "NOT VALID FOR CLAIMING INPUT TAXES" remark 1st Quarter 2/6/2016 P-1582 CEBUANO'S TAILOR p 53.57 Subtotal- 1st Quarter 53.57 Total-Input VA Ton domestic purchase of goods/services supported by a document with "NOT p 53.57 VALID FOR CLAIMING INPUT TAXES" remark 8) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where ATP details are not indicated and/or unreadable or the ATP is expired 1st Quarter 2/12/2016 P-1594 MOTHERS CHOICE SURIGAO INC p 137.13 2/12/2016 P-1596 MOTHERS CHOICE SURIGAO INC 417.1 3/24/2016 P-2381 ULING ROASTERS 57.86 2/15/2016 P-3762 GRANT LINE INC 32.36 2/5/2016 P-3929 JOLLIBEE 10.61 1/29/2016 P-3951 JOLLIBEE 8.79 2/2/2016 P-3955 MR. KIMBOB BIBIMBOB INC. 10.61 Subtotal- 1st Quarter 674.46 2nd Quarter 6/3/2016 P-1023 SM PRIME HOLDINGS INC 2.68 6/30/2016 P-2492 K3CP CORPORATION 153 6/17/2016 P-2508 HONEYLEMON FOODS INC. 13.39 6/24/2016 P-2533 CHOWKING 25.82 6/17/2016 P-2535 MOTHERS CHOICE SURIGAO INC 404.47 6/24/2016 P-2552 MOTHERS CHOICE SURIGAO INC 378.76 6/10/2016 P-2569 MOTHERS CHOICE SURIGAO INC 106.18 5/27/2016 P-2871 JANETTE LAGUA 31.61 5/20/2016 P-2884 MOTHER'S CHOICE SURIGAO INC. 136.61 4/20/2016 P-3069 HONEYLEMON FOODS INC 51.86 4/29/2016 P-3082 K3CP CORPORATION 55.82 4/29/2016 P-3084 BABIELYN KITCHENETIE 76.61 4/22/2016 P-3099 MOTHERS CHOICE SURIGAO INC 368.6 4/30/2016 P-3115 MOTHERS CHOICE SURIGAO INC 496.34 4/30/2016 P-3117 MOTHERS CHOICE SURIGAO INC 105.2 ~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 4/8/2016 P-4027 MC KINLEY FOOD EXPRESS, INC. 10.61 4/26/2016 P-4052 CHOWKING 10.61 Subtotal - 2nd Quarter 2,428.17 3rd Quarter 7/20/2016 P-863 AKROASIA PETRON SERVICE STATION 12.32 7/8/2016 P-2008 HONEYLEMON FOODS INC. 10.61 9/25/2016 P-2645 TAIPAN DEVELOPMENT INC 55.97 9/22/2016 P-3225 RED RIBBON 75 Subtotal - 3rd Quarter 153.9 4th Quarter 12/9/2016 P-1811 MOTHERS CHOICE SURIGAO INC 88.93 10/14/2016 P-2121 MOTHER'S CHOICE SURIGAO INC. 43.39 10/14/2016 P-2123 MOTHER'S CHOICE SURIGAO INC. 160.71 10/16/2016 P-2155 ROBINSONS DEPARTMENT STORE 5.36 11/21/2016 P-2249 CHOWKING-SURIGAO DOWNTOWN 21.11 Subtotal - 4th Quarter 319.5 Total-Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where ~ 3,576.03 A TP details are not indicated and/or unreadable or the A TP is expired 9) Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where alterations were made without authorized countersignature 1st Quarter 2/1/2016 P-382 TRAVELBEE MANAGEMENT CORPORATION fD 265.71 2/12/2016 P-4794 GLOBAL SECUIRTY SOLUTIONS INC. 1,042.73 2/27/2016 P-1737 PRUDENTIAL CUSTOMS BROKERAGE SERVICES INC. 5.16 3/23/2016 P-2376 PARKWAY 115.79 3/18/2016 P-2413 GREENWICH 149.46 2/24/2016 P-3433 MA. UNA CATERING SERVICES 514.29 2/24/2016 P-3434 ESPRUTINGKLE GAS & SERVICE INC. 10.71 3/2/2016 P-3878 JOLLIBEE FOOD CORPORATION 8.79 3/18/2016 P-3907 MANGINASALRESTAURANT 11.89 Subtotal - 1st Quarter 2,124.53 2nd Quarter 5/8/2016 P-381 THE BELLEVUE MANILA 4,903.15 6/20/2016 P-953 MANDAUE STAR OIL GASOLINE STATION & CONVENIENT STORE 68.46 6/8/2016 P-1028 GOODHOPEHARDWARE 19.07 5/23/2016 P-2309 CEBU ADGEM AUTO PARTS 6.96 5/18/2016 P-2311 NIKKIE POLLUTION TEST CO. 32.14 5/23/2016 P-2327 AKROASIA PETRON SERVICE STATION 214.93 5/23/2016 P-2331 CALOOCAN BEARING AND PARTS CORP. 22.5 4/24/2016 P-2368 MAPECON PHILIPPINES, INC 267.86 6/26/2016 P-2560 ULING ROASTERS 57.86 6/24/2016 P-2563 ULING ROASTERS 77.14. 4/8/2016 P-2787 ESPRUTINGKLE GAS & SERVICE INC. 10.71 4/13/2016 P-2798 NEWSAN TRADING LTD. CO. 843.75 5/2/2016 P-2851 ULING ROASTERS 250.71 5/27/2016 P-2853 MOTHER'S CHOICE SURIGAO INC. 133.39 I 5/27/2016 P-2855 ULING ROASTERS 57.861 &1

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 6/26/2016 P-2870 CHOWKING 17.79 6/24/2016 P-3554 HI-SERVE PETROLIUM RETAILERS 53.57 4/2/2016 P-4005 SLT GASMART CORPORATION 6.43 4/3/2016 P-4009 SM HYPERMARKET 152.61 4/7/2016 P-4023 MUY BIEN FOODS CORPORATION 9.11 4/21/2016 P-4042 KNOXPORT, INC. 10.61 Subtotal - 2nd Quarter 7,216.62 3rd Quarter 8/9/2016 P-409 PETRON XPRESSFILLSTATION 107.16 9/22/2016 P-754 GLOBAL SECUIRTY SOLUTIONS INC. 536.8 8/18/2016 P-630 D. MICHAEL CO INDUSTRIAL SUPPLY (DMC) CORP 11,416.07 7/27/2016 P-885 AKROASIA PETRON SERVICE STATION 13.16 7/22/2016 P-1960 JOLLIBEE 39.86 7/1/2016 P-2028 MOTHER'S CHOICE SURIGAO INC. 417.37 9/30/2016 P-2618 CABADBARAN SHELL SERVICE STATION 107.14 9/30/2016 P-2619 ASM FOODS 13.82 8/5/2016 P-3002 LAVENDER SHELL SERVICE STATION & GEN. MDSE. 10.71 8/30/2016 P-3167 CBX 1,496.25 8/31/2016 P-3168 AKROASIA PETRON SERVICE STATION 214.14 8/31/2016 P-3181 CEBU PORT AUTHORITY 2.89 9/8/2016 P-3199 SANFORD MARKETING CORPORATION 79.07 9/8/2016 P-3204 AKROASIA PETRON SERVICE STATION 141.44 9/14/2016 P-3210 AEROPHONE ENTERPRISES & CO. 107.14 9/20/2016 P-3218 ESPRUTINKLE GAS & SERVICES INC. 1,069.93 9/22/2016 P-3226 LAVSHELL SERVICE STATION 155.64 8/30/2016 P-4162 RUFO'S FAMOUS TAPA 13.5 8/30/2016 P-4165 MQUAD SOLUTIONS INC. 256.07 8/31/2016 P-4166 SUPERVALUE, INC. 124.31 8/31/2016 P-4167 BLUE BOZ 4.29 9/2/2016 P-4176 TROPICAL HUT HAMBURGER 8.46 9/2/2016 P-4178 MICHEAL T. TAGORDA 10.71 9/5/2016 P-4182 MQUAD SOLUTIONS INC. 256.07 9/6/2016 P-4187 SAM HIRANAND FOOD CORPORATION 25.71 9/9/2016 P-4191 SAM HIRANAND FOOD CORPORATION 11.79 Subtotal - 3rd Quarter 16,639.51 4th Quarter 10/13/2016 P-577 PEAR ENTERPRISES 51,980.00 10/10/2016 P-1523 AKROASIA PETRON SERVICE STATION 214.29 10/14/2016 P-1536 THE FIRST FAMILY APPLIANCE CIRCLE CORP. 2,538.75 12/5/2016 P-3706 ERNA GASOLINE STATION 10.71 11/15/2016 P-4256 MOMS FLOWERSHOPPE 21.22 12/7/2016 P-4301 SODEXO BENEFITS AND REWARDS SERVICES PHILIPPINES, 5,713.71 INC. Subtotal - 4th Quarter . 60,478.69 86,459.35 Total-Input VAT on domestic purchase of goods/services supported by VAT Invoice/OR where alterations were made without authorized countersignature 10) Input VAT on domestic purchase of goods/services supported by Non-VAT Invoice/OR ~ -----

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 1st Quarter 3/17/2016 P-539 PLOT INC p 756.26 2/17/2016 P-540 PLOT INC 364.83 Subtotal - 1sf Quarter 1,121.09 Total-Input VA Ton domestic purchase of goods/services supported by Non-VAT Invoice/OR ~ 1,121.09 Total Input VAT on Domestic Purchases Not Properly Substantiated ~1 ,562,076.91 With regard to the refund of input VAT on importation of goods other than capital goods in the total amount of P3,570,947.00, it is important to emphasize that to be entitled to its claim, petitioner must prove, among others, {i) the fact of importation; and, {ii) the payment of VAT on said importation. It must be noted that the Court denied admission in evidence50 petitioner's Exhibit Nos. "P-3255" to "P-3271", with sub-markings, which pertains to the Bureau of Customs' Single Administrative Documents (SAD) and Statement of Settlement of Duties and Taxes (SSDT) on its alleged importation of goods. Without the SAD and SSDT, the Court cannot ascertain the fact of importation and the payment of VAT on such importation. Thus, the input VAT on importations in the total amount of P3,570,947.00 shall be disallowed, as follows: Import Exhibit No. OR No. Date of Input VAT Entry No. VAT R-5299 R-9558 Payment R-7376 1st Quarter 150971 R-19988 C-2368 P-3255 to P-3255-E, P-3860 1/27/2016 fD 27,123.00 R-22751 2/15/2016 60,208.00 C-2304 P-3256 to P-3256-c, P-3861 R-23688 2/1/2016 88,576.00 R-30588 3/15/2016 717,960.00 C-367 P-3257 to P-3257-G, P-3861 R-30433 3/21/2016 47,397.00 R-30767 941,264.00 C-36901 P-3258, P-3862 fD R-46324 C-994 P-3259 to P-3259-F, P-3862 R-65981 Subtotal - 1st Quarter R-65981 R-72605 2nd Quarter R-81085 C-11595 P-3260 to P-3260-D, P-3272, 4/26/2016 290,294.00 P-4750-A C-1200 P-3261 to P-3261-E, P-3272, 4/7/2016 55,031.00 P-4751 27,775.00 6/3/2016 896,014.00 C-15522 P-3262 I P-3864 6/2/2016 258,063.00 6/3/2016 p 1,527,177.00 C-15560 P-3263 to P-3263-1, P-3864 C-15671 P-3264 to P-3264-E, P-3864 Subtotal- 1st Quarter 3rd Quarter C-2434 P-3265 to P-3265-D, P-3865 7/1/2016 57,260.00 9/15/2016 126,754.00 C-3829 P-3266, P-3867 184,014.00 fD Subtotal - 3rd Quarter 4th Quarter C-30184 P-3267, P-3868 10/17/2016 59,364.00 10/13/2016 179,107.00 C-4249 P-3268, P-3868 11/21/2016 44,420.00 C-4785 P-3269, P-3869 50 Resolution dated February 26,2020, CTA Docketvol. VI, pp. 3603-3607.11(

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 C-37240 I P-3270, P-3870 R-70074 12/12/2016 137,970.00 12/13/2016 497,631.00 C-5146 I P-3271, P-3870 R-86195 918 492.00 Subtotal - 4th Quarter Total Input VAT on Importations Not Supported by Admitted Evidence p 3,570,947.00 The total disallowances per the Court's further verification of petitioner's input taxes for the four quarters of TY 2016 is ~5, 133,023.91, computed as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Input VAT on Domestic Purchases p 104,849.85 p 245,287.73 p 376,323.87 p 835,615.46 p 1,562,076.91 Not Properly Substantiated Input VAT on Importations Not 941,264.00 1,527,177.00 184,014.00 918,492.00 3,570,947.00 i Supported by Admitted Evidence Total Disallowances per Court's p 1,046,113.85 p 1,772,464.73 p 560,337.87 p 1,754,107.46 p 5,133,023.91 further verification In view of the foregoing disallowances, the total valid input taxes of petitioner subject for allocation is ~342,472.59, as shown below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total P1,338,962. 78 P2, 085,465.00 Total Input VAT p 970,264.20 P2,367,866.07 P6,762,558.05 Less: Disallowance per 338,285.47 150,499.55 189,997.23 79,414.02 758,196.27 ICPA Exception Disallowance per 1,046,113.85 1,772,464.73 560,337.87 1,754,107.46 5,133,023.91 Court's Further 219,929.10 534,344.59 871,337.87 Verification (45,436.54) 162,500.72 Valid Common Input Tax 528,865.28 for Allocation '-��p 342,472.59 Less: Input Tax on - Unaccounted Purchases Net Valid Common Input Tax for Allocation Considering that petitioner is engaged in taxable sales subject to both Oo/o and 12�/o VAT, and its input VAT cannot be directly or entirely attributed to any of the transactions, the valid common input VAT of ~342,472.59 shall be proportionately allocated on the basis of the volume of its sales in accordance with Section 112(A) of the NIRC of 1997, as amended, thus: Total VATable Sales per Quarterly VAT Returns p 14,624,302.04 Divided by Total Declared Sales per Quarterly VAT Returns Multiplied by Total Valid lnQut VAT 97,802,307.14 Input VAT Allocated to Total VATable Sales 342,472.59 Total Zero-rated Sales per Quarterly VAT Returns Divided by Total Declared Sales per Quarterly VAT Returns p 51,209.66 1 P 83,178,005.10 rr1 97,802,307.14 I

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 Multiplied by Total Valid Input VAT . 342,472.59 Input VAT Allocated to Zero-rated Sales 291,262.93 Thus, petitioner has valid input VAT attributable to its zero-rated sales in the amount of P291 ,262.93. Sixth Requisite: Petitioner has no excess input VAT available for refund Having determined that petitioner had valid input VAT attributable to its zero-rated sales, the Court shall now determine whether the same was not applied against its output VAT liability. After deducting the input tax attributable to VATable sales in the amount of P51 ,209.66 from its output VAT liability of P1, 754,936.25 from the said sales, petitioner still has a net output VAT payable of P1,703,726.59, as computed below: Period Output VAT 1st Quarter p 428,487.15 2nd Quarter 3rd Quarter 377,688.41 4th Quarter 556,167.00 Total 392,593.69 fit 1,754,936.25 Output VAT per Returns p 1,754,936.25 1 Less: Input VAT Allocated to Total VATable Sales Net Out~ut VAT Payable 51,209.66 I p 1'703,726.59 ! Since petitioner's input VAT attributable to VATable sales is not enough to cover its output VAT liability, the valid input VAT attributable to zero-rated sales shall be utilized against the remaining output VAT liability of P1, 703,726.59. However, the input VAT attributable to zero- rated sales of P291 ,262.93 is way lower than the net output VAT payable of P1 ,703,726.59. Consequently, petitioner still has net output VAT due of P1 ,412,463.66, computed as follows: Net Output VAT P~able p 1,703,726.59 Less: Input VAT Allocated to Zero-rated Sales Net Output VAT Still Due . 291,262.93 1,412,463.66 While the Court notes that petitioner's 1st Quarterly VAT Return for TY 2016 reflected the amount of P4,249,849.48 as "Input Tax Carried Over from Previous Period", petitioner failed to submit documents, official receipts and invoices to support the input tax carry~

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 over of P4,249,849.48. Hence, petitioner's input tax carried over from previous period cannot be validly applied against petitioner's net output VAT due pursuant to Section 110(A) in relation to Section 110(8) of the NIRC of 1997, as amended. Verily, in claiming excess or unutilized input VAT from zero-rated transactions, it is the excess over the output VAT which should be refunded to the taxpayer or credited against other internal revenue taxes. It is important for the taxpayer to prove that it has enough prior year's excess input VAT credits to cover its output VAT liability for the current taxable year. To reiterate, in cases filed before this Court, which are litigated de novo, party-litigants must prove every minute aspect of their case. 51 Consequently, there being no excess input VAT which may be the subject of a claim for refund or issuance of tax credit certificate, the present claim must be denied. Finally, it bears stressing that a claimant has the burden of proof to establish the factual basis of his or her claim for tax credit or refund. 52 Tax refunds are in the nature of tax exemptions. As such, they are regarded as in derogation of sovereign authority and to be construed strictissimi juris against the person or entity claiming the refund. 53 The pieces of evidence presented entitling a taxpayer to an exemption are also strictissimi scrutinized and must be duly proven.54 Hence, an applicant for a claim of tax refund or tax credit must not only prove entitlement to the claim but also compliance with all the documentary and evidentiary requirements. 55 WHEREFORE, in light of the foregoing, the Petition for Review filed on May 15, 2018 is hereby DENIED for lack of merit. SO ORDERED. Presiding Justice 51 Commissioner of Internal Revenue vs. United Salvage and Towage (Phils.), Inc., G.R. No. 197515, July 2, 2014. 52 Citibank N.A. vs. Court of Appeals and Commissioner of Internal Revenue, G.R. No. 107434, October 10, 1997. 53 Commissioneroflnternal Revenue vs. S.C. Johnson and Son, Inc., eta/., G.R. No. 127105, June 25, 1999. 54 Kepco Philippines Corporation vs. Commissioneroflnternal Revenue, G.R. No. 179961, January 31,2011. 55 Eastern Telecommunications Philippines, Inc. vs. Commissioner of Internal Revenue, G.R. No. 183531, March 25, 2015.

DECISION Rema Tip Top Philippines, Inc. vs. Commissioner of Internal Revenue CTA Case No. 9836 I CONCUR: ~~�7.~ CXTHERINE T. MANAHAN Associate Justice CERTIFICATION Pursuant to Article VIII, Section 13 of the Constitution, 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