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CEBU INTERNATIONAL FINANCE CORPORATION v. ARTHUR R. CABIGON

This case has been cited 1 times or more.

2011-01-31
MENDOZA, J.
It must be emphasized that the requirement of imprinting the word "zero-rated" on the invoices or receipts under Section 4.108-1 of R.R. No. 7-95 is mandatory as ruled by the CTA En Banc, citing Tropitek International, Inc. v. Commissioner of Internal Revenue.[13] In Kepco Philippines Corporation v. Commissioner of Internal Revenue,[14] the CTA En Banc explained the rationale behind such requirement in this wise: The imprinting of "zero-rated" is necessary to distinguish sales subject to 10% VAT, those that are subject to 0% VAT (zero-rated) and exempt sales, to enable the Bureau of Internal Revenue to properly implement and enforce the other provisions of the 1997 NIRC on VAT, namely: