VAT Exempt Transactions and Services

8/10/2019 VAT Exempt Transactions and Services

1/19

VAT ExemptTransactions: ServicesSales and others


2/19

Sale or importation of:

Agricultural and marine food products in theiroriginal state, livestock and poultry of a kindgenerally used as, or yielding or producingfoods for human consumption; and breedingstock and genetic materials therefore.


3/19

Fertilizers; seeds, seedings and fingerlings;

fish, prawn, livestock and poultry feeds,

including ingredients, whether locally producedor imported, used in the manufacture offinished feeds ( except specialty feeds for racehorses, fighting cock, aquarium fish, zoo

animals and other animals generally consideredas pet);

Sale or importation of:


4/19

Personal and household effects belonging to

the residents of the Philippines returning fromabroad and nonresident citizens coming toresettle in the Philippines, provided:

Such goods are exempt from customs dutiesunder the Tariff and Customs Code of thePhilippines;

Importation of:


5/19

Importation of:

Professional instruments and implements,wearing apparel, domestic animals, and personalhousehold effects, except

vehicle, vessel, aircraft, machinery, etc., and other goodsused for manufacture and merchandise in any commercialquantity. it belongs to person coming to settle in the Philippines for their own use, not for sale, barter, exchange and that person is arriving within ninety (90) days befor orafter their arrival such persons are actually coming to settle in thePhilippines and that change of residence is bona fide;


6/19

Importation of:

Fuels, goods and supplies by persons engagedin international shipping or air transportoperations.


7/19

Services rendered by:

Persons subject to percentage tax under TitleV of the NIRC;

Agricultural contract growers and milling forothers of palay into rice, corn into grits andsugar can into raw sugar;

Medical, dental, hospital and veterinaryservices except those rendered byprofessionals;


8/19


Educational services rendered by privateeducational institutions, duly accredited by theDepEd, CHED, TESDA, and those rendered bygovernment educational institutions;

Individuals pursuant to an employer-employeerelationship


9/19


Regional or area headquarters established inthe Philippines by multinational corporationswhich act as supervisory, communications andcoordinating centers for their affiliates,subsidiaries or branches in the Asia-PacificRegion and do not earn or derive income fromthe Philippines; and


10/19


Banks, non-bank financial intermediariesperforming quasi-banking functions, and othernon bank financial intermediaries.


11/19

Sales by:

Agricultural cooperatives duly registered withthe CDA to their members, as well as sale oftheir produce, whether in its original state orprocessed form, to non-members; theirimportation of direct farm inputs, machineries

and equipment, including spare parts thereof, tobe used directly and exclusively in theproduction and/or processing of their produce;


12/19

Sales by:

Non-agricultural, non-electric and non-creditcooperatives duly registered with the CDA;

provided, that the share capital contribution ofeach members does not exceed P 15, 000 andregardless of the aggregate capital and net

surplus ratably distributed among themembers; and


13/19

Sales by:

Persons who are not VAT registered ontheir export sales.


14/19

Others include:

Transactions which are exempted underinternational agreements to which the

Philippines is a signatory or under special laws,except those granted under PresidentialDecree No. 529 ( Petroleum Exploration

Concessionaries under the Petroleum Act of1949);


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17/19

Others include:

Sale, importation, printing or publication ofbooks and any newspaper, magazine, review or

bulletin which appears at regular intervals withfixed price for subscription and sale and whichis not devoted principally to the publications ofpaid advertisements;


18/19

Others include:

Sale, importation or lease of passenger orcargo vessels and aircraft, including engine,

equipment and spare parts thereof fordomestic or international transport operations;


19/19

Others include:

Sale or lease of goods or properties or theperformance of services other than the

transactions mentioned in the precedingparagraphs, the gross annual sales and/orreceipts of which do not exceed the amount of P1.5 million.

Documents

VAT Exempt Transactions and Services