T-Z

• Transactions exempt from VAT

  • Sale, importation, or lease of passenger or cargo vessels and aircraft, including engine, equipment, and spare parts thereof for domestic or international transport operations
  • Importation of fuel, goods, and supplies by persons engaged in international shipping or air transport operations
  • Services of banks, non-bank financial intermediaries performing quasi-banking functions, and other non-bank financial intermediaries, such as money changers and pawnshops subject to percentage tax
  • Sales or lease of goods and services to Senior Citizens and PWDs which are subject to a discount
  • Transfer of property pursuant to Section 40(C)(2) of the Tax Code
  • Association dues, membership fees, and other assessments and charges collected by homeowners' associations, condominium corporations, and recreational clubs
  • Sale of gold to the BSP
• The importation or purchase of passenger or cargo vessels and aircraft must meet the requirements of the Maritime Industry Authority (MARINA)
• Fuel, goods, and supplies imported by persons engaged in international shipping or air transport operations must be used exclusively or pertain to the transport of goods and/or passengers from a port in the Philippines directly to a foreign port or vice-versa without docking or stopping at any other port in the Philippines, unless the docking or stopping is for the purpose of unloading passengers and/or cargoes that originated from abroad, or to load passengers and/or cargoes bound for abroad
• The collection of association dues, membership fees, and other assessments and charges by homeowners' associations, condominium corporations, and recreational clubs is for the benefit of the unit owners or members, and they do not arise from transactions involving the sale, barter, or exchange of goods or property, or are generated by the performance of services
• Sale of gold to the BSP is exempt from 12% VAT, while sale of gold and other metallic minerals to other persons and entities is subject to 12% VAT if the gross selling price exceeds the threshold of 3,000,000
• The sale of items listed in basic necessities and prime commodities to Senior Citizens and PWDs, which are subject to a special discount rate of 5%, shall not be exempt from the VAT (JMC No. 1, series of 2022, May 18, 2022). (VATABLE)