exempt goods and services

• Generally exempt Sales and Receipts are not subject to what taxes?

  VAT, Percentage Tax and Excise Tax
• What are included it the exempt goods? (SECRET Tax free Gold)

  senior citizen and person with disabilities

  sale on exempt goods

  sales by cooperatives

  sales of residential property

  Export sales of Non Vat taxpayers

  Treaty or international agreements

  Tax free exchange

  Sales of gold to BSP
• What are exempt services?(SEARCH2 VA TRIPS)

  Schools

  Employees

  Agricultural contract growers and millers

  Residential leasing

  Hospital Services

  Homeowners Association

  Leasing of Vessels and Aircrafts

  Treaty Exempt Services

  Regional Area Headquarters

  International carriers

  Printers and Publishers

  Services to senior citizen and person with disabilities
• What are the exempt goods sold to senior citizens and person with disabilities?

  Medicine, medical supplies, medical accessories and equipments, food on restaurants    
• What are the exempt goods on vat on importation that is also applicable to vat?

  Books or any newspaper magazines review bulletins that is informative only

  Agricultural and marine food product in their original state

  Livestock and poultry feeds fertilizers, seeds, seedlings, and other ingredients used for its production

  Passengers cargo vessels on aircrafts including engine equipment and spare parts
• What is needed for a cooperative to be exempt?

  registered in cooperative development authority
• What are the residential property that are exempt?

  A capital asset or not held for sale or trade in the ordinary course of business

  Socialized housing

  House and lot not exceeding 3,199,200
• What is socialized housing

  It is for the homeless and underprivileged persons
• What is the effect of exemption of export sales from nonvat taxpayer?

  The non vat taxpayer cannot claim input vat as they do not have output vat due to its exemption
• What happens to export sales of a vat registered taxpayer?

  0% rated

  Can claim input credits related to its export sales
• Why is export sales of persons who are not vat registered exempt?

  It is consumed outside of the philippines

  Destination principle
• Why is treaty exempt sale of goods included?

  Reciprocity rule

  International agreements
• Why is tax free exchange on dealings on property exempt?

  There is no consideration involved in the transactions
• What business tax are exempt when a person sell gold BSP?

  No excise, business, or income tax
• What are schools services that are exempt?

  All government public private and non-profit schools in all levels

  For private and non-profit schools they should be accredited by Deped, Ched, Tesda
• What are educational services not included in the exemption?

  Service training, review classes and similar services rendered by persons not accredited by deped ched and tesda
• Received by an employee that are exempt

  All including compensation income and fringe benefits
• Why are employer employee relationship exempt from vat? 

  Not engage in business
• What are the example of services by agricultural contract growers and millings that are exempted?

  Palay into rice

  Corn into grits

  Sugarcane into raw sugar only
• What are the requirements for residential leasing to be exempted?

  Monthly rental not exceeding 15,000 per unit

  exceeding 15,000 but aggregate rentals during the year do not exceed 3 million
• exceeding 15,000 but aggregate rentals during the year do not exceed 3 million is vat exempt but subject to what tax?


  Percentage tax
• exceeding 15,000 and ggregate rentals during the year also exceeds 3 million is subject to what tax?

  Vat
• Hospital services are exempt when?

  Service and medicines provided to inpatient only

  Primarily related to medical services
• Why are the homeowner associations and condominium corporations exempt?

  Association dues membership fees other assessments and charges collected are purely for reimbursement only
• What are the things pertaining to passenger or cargo vessels and aircrafts are exempt?

  Sale importation or lease
• Why are cargo vessels and aircrafts exempted?

  Because of the geographical situation in the philippines which consists of thousands of islands
• Why is regional or area headquarters establish in the philippines exempt?

  Only has physical area but has not engage in business or dont derive profit from Philippines
• Is regional operational headquarters exempt?

  No because they are engaged in business
• What are the services exempt by an international carrier doing business in the philippines?

  Transport of passengers
• Publishers and printers services are exempt when?

  Printing and publication of books newspaper magazine journal review bulletin and informative reading materials
• What are the example of services to senior citizen and person with disabilities are except

  Professional medical services

  Transport services

  Hotel / lodging services

  Leisures and amusement

  Burial or funeral services

  Restaurant services (20% discount as well)
• Sale of ordinary asset by a non vat taxpayer is subject to what tax?

  Percentage tax
• What are the other services or goods exempt?

  Sale of goods or services by a person not engage in business

  Sale of goods or services subject to special laws
• The lease of residential unit exempted should be a __ shelter

  Long term
• Ebook is vatable or exempt?

  Vatable
• What health care to senior citizens are exempt?

  Prescription medicines for critical illness

  Critical health care equipment and vaccines