Zero-rated

Transactions

Effectively
zero-rated

VAT-exempt
Transactions

Export sale of goods

and supply of services

Sale of G or supply of S
to persons or entities
exempt under special
laws and intl
agreements.

Sale of G or properties
and/or S and the use or
lease of properties that
is not subject to VAT

Seller charges no
output tax

Does not yield any tax

chargeable against the
purchases

Seller is not allowed

any tax credit of VAT
(input tax) on
purchases

Can claim refund or tax

credit for VAT
previously charged by
suppliers

For the benefit of

purchaser

For the benefit of seller