GIR V. MIRANT pacsrLao corp. ‘september 12, 2008 irant Pagbi'se Corporation ( hereinafter" MBC") is @ domestic firm engaged in the generation of power Which i sel ip. the Nabonal Power Corporation ( hereinafter "NPC" }. For the construction of ‘tho electrical and mechanical equipment portion of its Papbizo, Quezon Plant, wich appears to have “been Undertaken from 1993 to 1996, MPC secured the services ff Mitsubishi Corporation ( hereinafter ” MitsUBIShI” ) of Japan. Te mas only on Apri 14, 1998 that MPC oad Mitsubishi the VAT component for the progress billings from Apri 1993 to. September 1986, and fer which Mitsubishi issued Offical Receipt No. 0189 ( hereinafter “Official Receipt). Tn accordance with @ VAT Ruling No. (052-99 issuad on May 13, 1909, the supply of electricity by MFC to the NPC, shal De subject to zero percent VAT, MFC. fled on December 20, 1999 an administrative claim for tefund of unutlized input VAT. Tt is the allegation of MPC that since its sales to NPC is Subject to zero percent VAT, then the input VAT must be refunded. Facts: Tssves: 1. Whether or not the 1998 Official Racaipt can evidence payment of input VAT corresponding to 2 1583 5 2996 trangareon?” 2. Whether of not the claim for VAT refund of MPC was filed within the reglementary aeried? Ruling: 41, The Supreme Court ruled that the Offa! Receiot constituted suffkient proof _of payment of Greatable Input VAT for the progress bilings. from Mitsubishi for the period covering Apr 7, 1993 to Septernaer 6, 1996. As the Court distinctly notes, the law considers a duly- vexecuted VAT invoice oF Official Receipe 2s cufficent evidence to cupport a clam for input tox 2. The claim for refund or tax cred for the creditable input VAT payment made by NPC embodied in the Oficial Receipt was filed beyond the period provided: by law for such claim. The unutilzed input VAT payments nat othemise used for any intemal revenue tax due the taxpayer must be claimed within two years reckoned from the close of the taxable quarter when the relevant sales were made pertaining to the ingut VAT regardless of whether seid tax was paid or not. Given that the last creditable input VAT due for the period covering the progress biling of September 6, 41596 is the third quarter of 1996 ending on September 30, 1996, any claim for unutiized creditable inout VAT refund or tax crecit fr said quarter prescribed two years after September 30, 1936 or, to be precise, on September 30, 1998. Consequenty, MPC’ claim for refund or tax (edit fled on December 10, 1999 had already orescrbed.