Manila, Aug. 4 -- The Supreme Court (SC) has clarified that businesses registered with the Philippine Economic Zone Authority (PEZA) are not completely exempt from paying value-added tax (VAT).

In a decision made public on Monday, the SC Third Division partially granted Coral Bay Nickel Corporation's claim for a VAT refund.

Coral Bay is a PEZA-registered company that manufactures and exports nickel and cobalt mixed sulfide. It sought a refund from the Bureau of Internal Revenue for unutilized input VAT it paid for goods and services used outside the PEZA zone.

Businesses generally pay VAT on the goods and services they purchase, called input VAT. They also charge VAT to their customers when selling products or services, or output VAT....