WHAT ARE 12% VATABLE TRANSACTIONS?

A. SALE OF GOODS
Sale of real properties primarily held for sale;
Sale of right or privilege to use patent, copyright, design or model plan, secret formula, or process,
goodwill, trademark, trade brand, or other like property or right;
The right or privilege to use in the Philippines of any industrial, commercial, or scientific
equipment;
The right or privilege to use motion pictures films, tapes, and discs;
Radio, television, satellite transmission and cable transmission time.

B. SALE OF SERVICES
Means the performance of all kinds of service in the Philippines for others for a fee remuneration or
consideration, whether in kind or cash.
C. IMPORTATION OF GOODS
VAT is imposed on goods brought into the Philippines, whether for use in business or not. The tax shall
be based on the total value used by the BOC in determining tariff and customs duties, plus customs
duties, excise tax, if any, and other charges such as postage, commission and similar charges (landed
cost), prior to the release of the goods from customs custody (warehouse).

D. DEEMED SALE TRANSACTIONS

Transfer, use, consumption not in the course of business of goods originally intended for sale.
Distribution to shareholders as share in the profits.
Distributions to creditors as payment of debt.
Consignment of goods if actual sale not made within 60 days.
Retirement or cessation of business with respect to ending inventories.

WHAT IS ZERO (0%) RATED TRANSACTIONS?

A. SALE OF GOODS
Foreign Currency Denominated Sale;
Export Sale;
Sale of person entities which is VAT exempt under special laws or international agreements to which
the Philippines is a signatory;
Sale of power or fuel generated through renewable sources of energy.