I-N +NOTES

• Services rendered by individuals


  Pursuant to an employer-employee relationship
• Services rendered by regional or area headquarters (RHQs)


  Established in the Philippines by multinational corporations which act as supervisory, communications, and coordinating centers for their affiliates, subsidiaries, or branches in the Asia-Pacific Region, and do not earn or derive income from the Philippines
• Transactions which are exempt


  Under international agreements to which the Philippines is a signatory or under special laws, except those under PD 529
• Sales by agricultural cooperatives


  Duly registered with and in good standing with the Cooperative Development Authority (CDA) to their members as well as sale of their produce, whether in its original state or processed form, to non-members; and their importation of direct farm inputs, machineries, and equipment, including spare parts thereof, to be used directly and exclusively in the production and/or processing of their produce
• Gross receipts from lending activities


  By credit or multi-purpose cooperatives duly registered with and in good standing with the Cooperative Development Authority
• Sales by non-agricultural, non-electric, and non-credit cooperatives


  Duly registered with and in good standing with the Cooperative Development Authority (CDA)
• Conditions for non-agricultural, non-electric, and non-credit cooperatives

  • Share capital contribution of each member does not exceed Fifteen Thousand Pesos (₱15,000)
  • Importation of machineries and equipment, including spare parts thereof to be used by them are subject to VAT
• Conditions for electric cooperatives(VATABLE)


  • All registered with the National Electrification Administration (NEA)
  • Subject to VAT on sales relative to the generation and distribution of electricity as well as their importation of machinery and equipment, including spare parts
  • Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal, ocean energy, and other emerging energy sources using technologies such as fuel cells and hydrogen fuels, shall be subject to 0% VAT