OUTPUT VAT: ZERO-RATED SALES

ZERO-RATED SALES OF GOODS OR PROPERTIES ZERO-RATED SALES OF SERVICES

1. EXPORT SALES 1. Direct export 1. SALE OF SERVICES TO NON- Requirements:
2. Indirect export RESIDENTS a. Performed in the Philippines
3. Sale or raw materials or packaging b. Paid for in acceptable foreign currency
materials to an export-oriented or its equivalent in goods or services
enterprise c. Payment must be accounted for under
4. Sale of Gold to BSP the rules and regulations of the BSP
5. E.O. 226 Omnibus investment Code
6. Sale of goods or properties, supplies,
equipment and fuel to persons engaged
in international shipping or international
air transport operations
2. FOREIGN CURRENCY 2.EFFECTIVELY ZERO-RATED SALES 1. Rendered to a person or entity granted
DENOMINATED SALES OF SERVICES indirect tax exemption under special laws
or international agreements
2. Rendered TO persons engaged in
international shipping or air transport
3. Performed by (sub)contractors/ in
processing goods for an enterprise whose
>70% of annual production: export sales
3. SALES TO TAX-EXEMPT PERSONS Special laws: Int’l agreements: 3.TRANSPORT OF PASSENGERS AND -outgoing transport services
OR ENTITIES UNDER SPECIAL LAWS SBMA ADB CARGOES BY DOMESTIC AIR OR SEA If: incoming transport rendered abroad:
OR INTERNATIONAL AGREEMENTS PEZA IRRI CARRIERS FROM PH TO A FOREIGN exempt
PNRC UN COUNTRY
PAGCOR USAID
Embassies
4. SALE OF POWER OR FUEL
GENERATED FROM RENEWABLE
SOURCES OF ENERGY