This document outlines various VAT exempt transactions in the Philippines. It lists over 30 categories of transactions that are exempt from value-added tax, including the sale or import of agricultural products, livestock, fertilizers and seeds; import of personal effects; educational services; lending by cooperatives; export sales; and sale of real property not primarily held for sale. It also exempts essential services like medical care, transport of passengers, and import of fuel for transport operations.
This document outlines various VAT exempt transactions in the Philippines. It lists over 30 categories of transactions that are exempt from value-added tax, including the sale or import of agricultural products, livestock, fertilizers and seeds; import of personal effects; educational services; lending by cooperatives; export sales; and sale of real property not primarily held for sale. It also exempts essential services like medical care, transport of passengers, and import of fuel for transport operations.
This document outlines various VAT exempt transactions in the Philippines. It lists over 30 categories of transactions that are exempt from value-added tax, including the sale or import of agricultural products, livestock, fertilizers and seeds; import of personal effects; educational services; lending by cooperatives; export sales; and sale of real property not primarily held for sale. It also exempts essential services like medical care, transport of passengers, and import of fuel for transport operations.
VAT Exempt Transactions such persons, or arriving within a
A. Sale or importation of: reasonable time - agricultural and marine food products in their original state E. Services subject to percentage tax - livestock and poultry F. Services by: generally used for human consumption - agricultural contract growers and NOTE: considered in their original state milling for others even if they have undergone simple - palay into rice, corn into grits and processes of preparation or sugar cane into raw sugar; preservation G. Medical, dental, hospital and veterinary B. Sale or importation of: services - Fertilizers XPN: those rendered by professionals. - Seeds - Seedlings H. Educational services rendered by private - Fingerlings educational institutions duly accredited by: - fish, prawn, livestock and poultry feeds - DepED - used in the manufacture of finished - CHED feeds - TESDA XPN: specialty feeds for race horses, - Those rendered by government educational fighting cocks, aquarium fish, zoo institutions animals and other animals generally considered as pets I. Services rendered by: - Individuals C. Importation of: Note: pursuant to an employer- personal and household effects employee relationship belonging to: - residents of the Philippines J. Services rendered by: returning from abroad - regional or area headquarters - nonresident citizens coming to established in the Philippines by resettle in the Philippines multinational corporations which act Note: such goods are exempt from as: customs duties - supervisory - communications D. Importation of: - coordinating centers - professional instruments and note: for their affiliates, implements subsidiaries or branches in the - tools of trade, occupation or Asia-Pacific Region and do not employment earn or derive income from the - wearing apparel Philippines; - domestic animals - personal household effects K. Transactions which are exempt under Note: belonging to: international agreements/under special laws - persons coming to settle in - XPN: those under Presidential Decree the Philippines, No. 529 - Filipinos or their families and descendants who are now L. Sales by: agricultural cooperatives duly residents/citizens of other registered with the Cooperative Development countries (OFWs) Authority - In quantities and class suitable to their To: their members profession, rank or position of the persons importing the items Sale of: their produce (original state or - for their own use and not for sale, processed form) barter or exchange accompanying To: non-members note: by persons engaged in M. Gross receipts from lending activities by: international shipping or air transport - credit or multi-purpose cooperatives operations duly registered with the Cooperative - used for international shipping Development Authority or air transport operations N. Sales by: - non-agricultural, non- electric and non- V. Services of: credit cooperatives duly registered with - Bank the Cooperative Development - non-bank financial intermediaries Authority performing quasi-banking functions, note: share capital contribution of each - other non-bank financial intermediaries member does not exceed P15K W. Sale or lease of: regardless of the aggregate capital and - goods net surplus ratably distributed among - services the members - TO: senior citizens and persons with disability O. Export sales by persons who are not VAT- registered X. Transfer of property pursuant to Sec. 40 (C)(2) P. Sale of real properties: of the NIRC - not primarily held for sale to customers Y. Association dues, membership fees, and other - not held for lease in the ordinary course assessments and charges of trade or business - Collected by homeowners association - not real property utilized for low-cost and condominium corp. and socialized housing Z. Sale of gold to BSP note: Residential lot valued at 1.5M and AA. Sale of drugs and medicines below (other residential dwellings at Note: prescribed for diabetes, high cholesterol 2.5M) and hypertension.
Q. Lease of a residential unit BB. Sale or lease of:
- Monthly rental not exceeding 15K - Goods - Properties R. Sale, importation, printing or publication of: - Services - books Note: not mentioned in A-AA, and gross - any newspaper annual receipts/sale do not exceed 3M - magazine review - bulletin - note: appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of paid advertisements S. Transport of passengers by international carriers T. Sale, importation or lease of: - passenger or cargo vessels and aircraft - including engine, equipment and spare parts thereof note: for domestic or international transport operations