VATable Transactions

-services rendered by non-resident alien - Non-vat registered whose regular sales exceeds 1,919,500 -VAT-registered regardless of sales

Zero-Vat
1. Export sales paid in FOREIGN currency Sales and actual shipment of goods from Phil to Foreign country Sale of raw materials to a non-resident buyer even though delivered to a resident local mnfg Sale to international shipment or air transporting companies Sale performed by sub/contractors to an export oriented enterprise whose export sales exceed 70% of total production Those considered export sale (Omnibus Investment Code of 1987)

VAT-exempt subject to OPT

- sale of shares of stock through the stock market (1/2 of 1%) -Overseas communication (10%) -Horse Race winning (10%)

Exempt from Registration Fee

-Purely compensation income earner -Overseas workers -self-employed individual where the gross sales or receipts do not exceed P100,000 per year (subsistence livelihood earner)

-Commercial property regardless of amount

-Jai Alai (30%) -Non-VAT registered sale or lease (3%) -receipts by domestic common carriers by LAND (3%) -franchise grantees of radio or TV with annual receipts do not exceed P 10,000,000 (3%) -franchise grantees of gas and water utilities (2%) -LIFE insurance business (5% on Insurance premium) -fire, marine and miscellaneous insurance agents of FOREIGN insurance companies -IPO (1/2 of 4%)

Transactions with the Government Units

-Final VAT of 5% (if seller Vat-registered) or -Percentage tax of 3% (if seller is non-VAT subject to 3% OPT) and; 1% Creditable withholding Income taxes on the purchase of goods 2% on services

2. Sale of Gold to Banko Sentral

3. Foreign currency denominated sales 4. Effectively zero-rated sales Sale of power or fuel through renewable sources of energy

Sale to persons granted indirect tax exemption SMBA and CDA PEZA Asian Development Bank IRRI 5. Gross-receipts of domestic corporation for: Transport of passengers and cargo by air or sea vessel to foreign currency Services paid for in Foreign currency and in accordance with IRR of Banko Sentral (BSP)

VAT taxable transactions not allowed with tax credit for Input VAT Paid
-Non-VAT registered whose sales exceeds 1,919,500 -Non-VAT franchise grantees of radio and TV broadcasting with receipts more than P10,000,000 -Importations

VAT-exempt and OPT-exempt

1. Export sale of non-VAT registered business 2. Importation on the following:

Fuel, goods and supply by personds engaged in international shipping or air transporting operation

-Local payment of rent vessel or carriers owned by nonresident foreign entity

Balikbayan goods provided such goods are exempted from CUSTOM duties under the Tariff and Customs Code Professional instruments and implements etc. belonging to persons coming to settle in the Phils for their own use and not for sale 3. Sales and Importation of: Agricultural and marine food products in their original state Fertilizers, seeds and others used in production excepts for racing animals and pets 4. Printing and publishing books; newspaper and magazine or bulletin not devoted in the publication of paid ads 5. Services of: Agricultural contract growers and millers for others Medical, dental, hospital and veterinary except those rendered by proferssional Private educational institutions accredited by TESDA and CHED Multinational Corporations regional or area headquarters and do not earn income from the Phils Transactions that are exempted under Philippines signatory 6. Sales or receipt of Cooperatives that are duly registered with the COOPERATIVE DEVELOPMENT AUTHORITY (CDA) 7. Sale/Lease of real properties Utilized for low-cost housing (750,000 ceiling price) Utilized for socialized housing for underpriviledged and homeless citizens Residential lot (P 1,919,500 or below) Residential House and lot (P 3,199,200 or below) Lease of Residential units with monthly rental per unit not exceeding P12,800