Zero Rated and VAT Exempt Sale

It is a taxable transaction for VAT purposes, but shall not result in any output tax. However, the input tax on purchases of goods, properties or services, related to such zero-rated sales, shall be available as tax credit or refund in accordance with existing regulations

• Zero-Rated Sale

• Vat Exempt Sale

Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported

• Zero-Rated Sale

• Vat Exempt Sale

Services rendered to a person engaged in business conducted outside the Philippines or to a non-resident person engaged in business who is outside the Philippines

• Zero-Rated Sale

• Vat Exempt Sale

Services rendered to persons or entities whose exemption under special laws or international agreements 

• Zero-Rated Sale

• Vat Exempt Sale

Services rendered to persons engaged in international shipping or air transport operations

• Zero-Rated Sale

• Vat Exempt Sale

Services performed by subcontractors and/or contractors in processing, converting, or manufacturing goods for an enterprise whose export sales exceeds seventy percent (70%) of total annual production

• Zero-Rated Sale

• Vat Exempt Sale

Transport of passengers and cargo by domestic air or sea carriers from the Philippines to a foreign country

• Zero-Rated Sale

• Vat Exempt Sale

Sale of power or fuel generated through renewable sources of energy Provided, however that zero-rating shall apply strictly to the sale of power or fuel generated through renewable sources of energy, and shall not extend to the sale of services related to the maintenance or operation of plants generating said power.

• Zero-Rated Sale

• Vat Exempt Sale

It is a sale of goods, properties or service and the use or lease of properties which is not subject to output tax and whereby the buyer is not allowed any tax credit or input tax related to such exempt sale.

• Zero-Rated Sale

• Vat Exempt Sale

Sale or importation of agricultural and marine food products in their original state, livestock and poultry of a kind

• Zero-Rated Sale

• Vat Exempt Sale