Reference no: EM133260577

Transaction Deemed Sales

There are acquisition transactions involving goods and or properties which are consumption in the nature but are not coursed through a purchase transaction. These Transactions(i.e. consumption) are not recorded as sales by the business and could evade taxation. Nevertheless, since these transactions are forms of consumptions, they are considered "deemed sales" for to be subjected to the VAT.

SALE TO EXPORT-ORIENTED ENTERPRISE

Any enterprise whose exports sales exceed 70% of the total annual production of the preceding taxable year shall be considered an "export- oriented enterprise" A certification to this effect is issued by the pertinent government agency.

SALE OF GOODS, PROPERTIES OR SERVICES TO A BOI- REGISTERD MANUFACTURER OR PRODUCERS

The sale of goods, properties, or services made by a VAT-registered supplier to a BOI-registered manufacturer/ producer whose products are 100% exported are considered export sales. A certification to this effect which is good for one year must be issued by the BOI.

Requirement for Zero-rating of export sales to non-residents:

A. The sale must have been paid for in acceptable foreign currency or its equivalent in goods or services.

B. The sale must be accounted for under the rules of the BSP.