this hapter, readers are expected to comprehend ‘The concept of importation ‘The types of eonsuption tax on importation ‘The is ofimportations which are exempt eansampion ‘The emncept of in “original state” for agricultural or marine food fers tthe purchase of goods or services by Philippine from non-resident sellers {Consumption Tax on Importation importation - forthe por of gods wtholding VAT forthe purchase of services from non-residents between the Consumption Tax on Importation Goods Serves | “Tnporters/ bers | Foreign servic providers Importers buyers | Resident purchaser of the serve” ‘Direct consumption ta | Trdrect busines tax Landed cose ‘Contract price BOC ai Before withdrew of | Afr ie month of payment goods nis payable othe Bureau of Custom andi paid prior ofthe goods from the Customs warehouse. The fine achapter 2—Value Added Taxon importation eithholding VAT 12% ofthe contract price for services rendered by non Fesidents ti remitedt the BIR PORT oF Goons {The importation of goods is ether 4. Exempt importation 2. Vatable importation 2-Vale Added Taxon importation imporiation ofthe following exempt goods snot subject to VAT Basie human food and elated goods J, Agricultural or marine ood products in orignal state 2, Uvestock and pouly of a hind generally sed as, oF yielding prodacng foods for human consumption Breeding stock and genetic materials therefore ynewspapersand magazines EXEMPT IMPORTATION or cargo vessels and aircrafts, Including engine, equipment ‘Importation of exempt goods (orem pootsconidered bai necesses are not subject tothe VAT Importation suchas 1 Agctaral and marine food products in her origina state 2. Peelers seeds, seins and fingerings, fish, raw, lvstck pouty feeds including ingredient sed Inthe manufacture ff feeds 13. Books and any newspaper, magazine rele or billet which regular intervals with Bed ples for sbstripcon and sale tihick isnot devoted princally. to the publication of al ‘Mversements 44 Passengers arg vesels and aera icing engine equip nd spore parte threo! for domesie or International Operations [HUMAN FOOD AND RELATED PRODUCTS: ral or marine food products in original state exemption ilimited ta agricultural marie food products in their State or those which undergone simple processing, Good that advanced processing are vatable exempt agricultural or marine food products in orignal state: apples, oranges and other futs ea, ginseng ‘om, coffee beans and other edible farm products ode such as fish and crustaceans and livestock Importation by VAT-eremp persons (fs, and meat for human consumption 1 imernational shipping oat transport operators on their import fuel good and supplies 2. Cooperatives of iret farm Inputs, machineries and equip Including spare parts theeotto be used directly ad excisivey i production and or processing f ther proce 23 Petloctorsonthlimpor of goods or srvices aces cow, bl calves pgs, sheep goat and rabbits Pou hal fos, dicks. geese and turkey. Marine fond shall Include fh and Sicha ut not linited to, el, out, lobster, shrimps, prawns Fmssels and lame (2876-2008) ‘Quast-importation PM Fersonal and. housthold effets belonging to residents of Paitppines returning from abroad! and non-resident etizens coming Fest nthe Pippin’ 2 Profesional instruments and implements, wearing apparel om hima ad personal Household efecs belonging persons cm Serie inthe Plppines, for thei own use and not or sale, bare cachange packaging including advanced technological means of packaging Importation which are exempt under special laws ond in ee ereric ‘agreement fe Stpping Corinding 2 BCRE 2 Ute Ae ee ee ee ‘Examples of simple at of preservation a. Preezing ‘Smoking Drying .Satung Packaging snot processing ast does not alter the nature of the products, ‘merely involves putting the product ina mieduty that makes Ie convene {or handling, storage or marketing ‘Thus; goods may stil be in ther orginal state even if they are pack ‘sing advanced technologea means, such a Shrink wrapping in pasties ib Vacuum packing © Tetrapacking 44 Other similar packaging methods ence, the following agricultural oF marine food products which underwent processing are alo exempt Wi sip at of | __ preservation wit acs “Sundried ruts [ Tetr-pacd res rt ules Salted mest Shvnirapped ment Smoked sh Dried fh Fronen meat rsh ete mies sa cant ated ay an chon “how Beet og and echo are slob enki thei ordinary sae he ooking ‘mehnds wel (he bog r hes) sre me preg Meee baled ed ew Sugar mes the natural sg exeace, fom sage thenegh snp fe bled eeysalin: ire ng cee ‘eres 2015 may22 015) ‘The importation of the aforementioned agricultural or marine fod products inthe origina states exempt rom VAT 4 |= Value Added Tax on importation agricultural or marine fod products agricultural or marin food products pertain to those which have changes in their chemical compostions or have ‘undergone recessing or treatment or are utilizing advanced techtologies in Canned-ardines [Four =] ater | Marinated iii orioconat ol |S son of processed products and those considered net in their state shall be subject to VAT on importation, purpose dictates vatabty Intended 25 love its are vatable sine they are not food but af course, is an exerpt human food. Cociighting chickens are since they are primarily imended for human amusement. They are when they lose. However, chicken produced for mest or egy are Suman foods Aishery inputs SF aricultural inputs intended for the production of marine or Jood products which are ultimately intended for human are also VAT-exemps. ton of Tart oF ishery Inputs suchas sed, seedings, breeding Jand genetic materials are exempt Ukewice. foods of these mpc erties and feeds including ingredients manutactre of fnished alsoVAT exempt. Inunded as maintenance of crops, livestock or poultry and Implements of agricultural or inputs, such as pesticides, animal medicines, fishing equipment, fishing boat, tractor, threshers and harvesters are vatable ace horse, aquarium fish, ighting cocks and pets are not or human consumption: hence, vatble. Feeds of these non food called special fod is ikewise vatabe feeds for animal food intended for ultimate human jon s VAT-exempt but ingredients forthe processing of human ff 2sRDS S”’“CS;ys«COoo 2—Value Added Taxon importation (Chapter 2—Value Added Taxon Importation stration that exemption does not extend to ther school supplies suchas chalk, Simaron Company imported the folowing agricul implements markers, ens notebook: pad paper an offer supplies, ‘Urea Frtzer 800000 Carico seeds ‘00000 GER OR CARGO VESSELS AND AIRCRAFTS Pestcdes ‘00000 oer Lat VAT exemption coves the impo of passenger or cago vesels and Rs Induding engine equipment and spare prs there fr danse The fertizer ond sods are expe Note that exp is mie to set aienl ransportoperaions. senfngs and friars. Other forming implements ach a Pest on Ierieds oe subject to VAT on importation WAT excmption on the import ofthese items lapsed under RA.9295 but nay Ra TOT ance oe Rules on VAT taxation of poultry and feeds _ Senet ans Lvestaek [Foal Pes eeniv for VAT-exemption i granted by lw in an effort to help the Tmporation of x x 2 to ofthe shipping, transport and tourism industry, [importation of feds or x x 7 Importation af feed x x 7 ‘quality for exemption, the importation must be subject tthe ingen for 7 lrement: on restriction on vessel importation and mandatory wesc nt program ofthe Marina Industry thority (MARINAY Passenger or cargo vesels-15 years Tankers 10 years Highspeed parsenger rats years tots pao fens fh ping ff fo a canst Examples of vatable non-food agricultural or marine products Logs, wood, bamboo, orchid and simular forest products Transport Group has land, sea and aie transprt operations. T bet up ts ps imported 5 uns of Daewoo bus. unt of aircraft and'? cise © Shells, corals, and other non-food marine products usually used 4 Race horses, fighting cocks, aquarium ish 200 animals, and ott animals generally considered as pete fhe orplane and sips are exempt but the importation ofthe land ronspor subject to VAT ‘BOOKS, NEWSPAPERS, MAGAZINE, REVIEW OR BULLETINS ‘The VAT exemption onthe importation of these goods is apparently i ‘upon the necessity” of education "and. information. ‘The Pili onstitation requires the State to give priority to education too patriotism and natonalism, accelerate soil progress and promote hhuman Hberaton and development. (See Sac 1, Artie Tl. Phi Constitution) “The Philippine Constitution also recognizes the vita ol of communica and information in nation-building (Ser See 24 Ib) ‘Conditions for exemption of newspaper, magazine review or bulletin: 1. They must appear at regular intervals ith ed prices for subscript 2 The sale must not be devoted principally to the publication of Advorisements. ngthe consumption axes, legal sensitivities must be consider It ed prindple of law, that items ‘ot inca are deemed xampt goods must be sry construed to cover only to tone the law as discussed herein Other basic evettes such ae ‘thing, procesed foods, Kitchen supplies schol supplies snd até nd exempt. A familarzton ofthe li simperate pt Fersons are not subject to VAT on importation. The extent of pen varies per exempt persons, ‘rempt importer subsequently sels his exempt importation to a Pt prson, the non-exempt buyer shall be sublet to VAT om 26 ooMEE" 2--Value Added Taxon importation for exemption coer mus be an grat operative duly regtere and in snd with the Cooperative Deveopment hasan oa) Jnyoration invaives ect farm inpets, machinery, Sulment and apart towed ety and easel i the eco fiber rode ‘Chapter 2— Value Added Taxon Importation Importation. The tx de on such importation shall constitute len on the ‘goods, superior to all charges or ens respective ofthe possessor of sd ods (Se. 4.107-(¢ R16 2005). LVAT-Exempt Persons under the NIRC: 1, International shipping or ar transport operators 2, Agricultural cooperatives 3. Eeozonelocators 1 3 Cooperative imported the following equipment tress to Be sed bye cooperative | 200000] tr punps tobe esl io embers 300 000 id seeds tobe sod bythe eooperaive | 1.900000 | {International shipping or ai transport operators ‘The exemption is limited to the Importation of fuel, goods and supplies Although these goods oF supplies are. physically brought into the Prilippines, they are not intended to be consumed herein. They wll 1b be usd bythe cooperative |"~—"S00000, ‘ukimatey be used in international transport. Ths consumption i a foreign tse cooperative directors and officers 7200000} ‘consumption rather than domestic consumption stration 1 alayian Ferries s an international shipping carver. It imported to the Philippines uel and supplies tebe used i it shipping operations ‘Note that the fc. goods or supplies willbe consumed i the high seos on {reign tertores ouside the county. The importation Ie no dome ‘eansumption but frlgn consumption: enc, ts exemperom VAT. lustration2 ay Airline ported je uel from rag attra costo 50,000,000. 4% the Importation is declared for domestic aiine operations whe ‘eclare or ternational ar anspor operations 60% of te #50000.000 importation wil be consumed in foreign srspaces. Ths i ‘ot for domestic consumption: hence, t's exempe from VAT Ol the 0% porto ‘which wil be sed domestically willbe subject the VAY on importation matics an euphoric se of ‘Stange he, rcrs ma theirs ena Woe ens an wed emp any ipo. The goin a dpe which aetna Wee ees We npr otras ecsran pias se etd: mp i a ty a at el re table boca ae ot aa pts mace creme Mastration3 laf iting am international ae case, imported je fe at total cost 40,000,000 subsequent sol P10,00,000 a thse to Feel Ald ‘arcarte, ‘Lif Airlne i exemp on ts importation ofthe F10.000 000 wort jt fe S Fee Air snot an exempt person and hat jet ls re vtabe goods Pe ir ‘erected a the porter ofthe P1000 00 ft fel and wl be sabe Vl afta Artine nc required topos the VAT on i sales fee fuck 204 heres nthe forging ison bys Fares operon enna an oneal elt etd at gra nd hb st Abt nt ton ch at th hrc Sth os sa VAP se sa Agricultural cooperatives The status of aprrcoop as VAT-exempt person i limited to Importation direct farm inputs, machineries and equipment, including their parts (849337) tapered» ong sr om oh a2 cst of Importation general subject VAT on importation snes he extend cooperativs which are not engaged a racenngo- Th 28 -Chapter 2—Value Added Taxon importation fF 2- Value Added Taxon Importation astration 4 ‘Armining cooperative imported an ozone generator and an ultrafine o {rnding nahin forts pol recover lant. The importation generally subj VAT because he cooperatives noon arialtral cooperative sales to Ecoaones are subject to zero-rated VAT for VAT taxpayers, ‘Bozones are considered foreign testis. Likewise, sales to es re exempt from business efor non-VAT taxpayers (See Sec. 109 fand(V;NIRC as amended). tustation S| fra Coop, a farming cooperative, imported ten tractors and 20 sacks Fybri sees. Arado Coop subsequent sold fur tractors and sacks fyb ‘eed t Mr Lac, cooperative member. 1 ororation, a PEZA locator, ol serap metals to Recycle Industries fon acurtoms territory buyer (Le, bayer outside the Ecozone). Industrie shall py the VAT on importaion directly to the Bureau of (0G) Winsielt Corporation ts noe required Impose the VAT on ts Mover emus be farted copy of he receipt ised bythe BOC forthe (Se BIR Ring No.D431-2007 January 19.2007. ‘Ara Coop's exempt from VAT on its Importation of farm equipment ond ‘ts sls of equipment ond seed to Mr Laco no subject to business tx Lac shale considered an importer but Mr Laco shal be subject VAT ony ‘hefarm equipment bat not on the hybrid ees. stration 6 operative imported frozen mest rom China It subsoquenty sold al otis to Pippin consumers. ‘The importation of roaen meat. an exempt goods, an erompt importation Any importer ince the sae by the cooperative tthe consumers (Lf Consumption) shal ot be subject t VAT. Likewise, he buyers Sal no be si te vATonimporatin Ecozone-locators Ecosones ave designated places of economic activity for the production {goad or services forthe export market By legal tion, economic zones a Considered foreign countries and are deemed outside Customs terri ‘Thus the Importation of goods Into the economic zones by locators ‘exempt not onl from VAT on importation but also from customs duties. ‘exemption from VAT covers any ods, supplies or machineries brou Into the ecoones by locators. ‘Technical Importation ‘The rules of VAT on importation apply to technleal importation Consumers ina customs teritory from pesons located in Special con ‘anes (See: 4.1071, RR 16-2005) Castors territry refers to the portion ofthe Republic of the Philipp ‘outside of designated special economic anes (Ecozones).(RR2-2005). lon 2 Nectzone lcstor, imported two machineries for use in the eczone Joneimachnery to Si felow PEZAocator, and resol the other tT, ithe zone ony the locator shl be exerp, The sles oS shal not be subject tar sine Ie doomed @ foreign consumption. 53 els on cxzoné inet thewise be subject the VAT on importation However To shal pay VAT on portation onthe machine purchase rom KT. ‘of personal and household effects belong to residents of hilipines returning trom abroad or non-resident citizens to reset Inthe Philippines instrument and implements, wearing apparel, domestic “and personal household effets belonging to persons coming inthe Philippines, for thelr own use sd not forsale, barter Pal and household effects bolong to Philippine residents of sintering to reste Inthe Piippines| are exempt rom Customs duties goods are past consumptions which have been previously consumption tax herein, tion of personal or household elects or profesional ‘by nontesdents intending to reste in the Philippines is mption na subject to Piippne consumption ax “Technical importation” refers to the purchase of non-Ecozone Philipp residents ftom Phlppine Ecozone-regstred enterprises By legal fi fcazones are considered foreign territories. Hence, the purchase Economic zones suc as but not limited to, Subs-Ecozone, Zambe- Eco fad Cagayan Eeorone ts subjectto the VAT on importation. 30 aee Phil Mines hall kewise pay the lowing fal withholding VA the tistataton src contract price P= 220,000 Maliply by: na Final withing VAT = aiso0 The customization service by Guang Industries snot sabe 0 fince the service ts dane abroad. The installation service subject Wwithboldng VAT sincettis done within. Payment of the withholding VAT. Using BIR Form 1600, the withholding VAT isremited monthly on of the 1D® day of the follwing month afer the withholding was made, for taxes witheld for December Which sal be Med oF paid on of January 25 of the following year. ‘Treatment of the VAT on importation and the Withholding VAT 1 it the resident purchaser isa VAT registered business, ican VAT on importition or withholding VAT as input VAT creditable ts output VAT. 2. the resident purchaser isa nen-VAT busines, the VAT on ing ‘oe final withholding VAT sal be part ofthe cost of purchase of Servicesand shall be treated as aseto expense 3. tthe purchaser is not engaged i Business, the VAT on img ‘meray add tothe cost ofthe ods importedChapter 2 Value Added Tax on importation (hopterZ—Value Added Taxon importation Note that when these were purchased. previous, they were already) subjected to consumption taxes The VAT on importation apples 10 Imporatons which represent current consumption of personal, household tr professional effects, does not apply to thei past consumption. Tm astraton 1 ‘Mr Sinan wae employed abroad as an OFW. He went brood aking ith bin] ‘personal fle suchas clothes. pees of persanal Jewel and godge earning P300000 in value. When his contrat ended, be returned tothe ‘hippies bringing nth hi the sume eect which ow have amare ‘ale of 280,000, ‘The importation (Le retarn) of the ermal effets wil ae be sujet to VA {ine hse ae post purchases which hod bon subject consumption ta whe purchased in the Poin. Iastraton 2 ‘While employed abroad, Mr. Siman purchased an iPhone 6 worth 30,000 alle purpose. Mr. Siman brought the IPhone tothe Pippin when bi fmployment contract ended The importation ofthe iPhone shal not Be subject to VAT on portation for mean thas nota present consumption of househol eects when rough im the Philippines Furthermore purchase abroed by noses ot suject to consumption tx nthe Philipines. Ther subsequent importation the Philpines te exemps from VAT on Importation Mes. Koolal Uay, a Philippine resident, purchased used clothing and sh ‘worth 730000 fons aro to be so Inher “Uyak” sales outs In Pippnes Se reserve P5000 of these for he personal use. ‘The entre P2000 purchase of gods fram abroad is «domestic consump Iestraton 5 ‘An inerrational non-profe organiation based in Switzeriand sent goods Intended donation to vicums offload i he Poiplnes. The pods consis af ‘ariows household teers grocery gos nd ce importation of these donated goods into the Philipines is subi to VAT forthe rce~a VAT-exmpt gods. These imported donations ae exempt “from VAT made n for of ecredtd non-profit organzaion Importaion of professional instruments and implements, wearing apparel omestie animal and personal household elects 1s for exemption: "The eos belong to persons who come to stn the Pilippines The pods must accompany the person upon srl or within 90 belo rater hisber ar a or ‘Theremust be evidence to show thatthe change of residences bona fie. ‘Th inprtation is ot a vehi machinery o ther equipment aed inthe Imanufctare or merchandise of any kind incomes quantity, Marqes professional boxer, applied fran application to migrate nthe ligpins and was granted by the Phulppine goverment. He brought his ers nd household fet including his personal er tothe Phlppines poration of profesional instruments and household ffs or exempt mporxion of tear isu 0 VA a ‘Kang fa Chinese martial arts master, arrived inthe Piippnes with an grate isa. Me brought with him the fallowing which he cared 35 is al ete Juipect othe VAT on importation. Thal applies without rear he put Of the importation wheter or busines or for personal se station 4 ‘Mrs Lovely Bua, non-resident Fipin businesswoman. owns a machine her busines in France, She decommissioned the machine tobe ansered er busines inthe Plippins. Although the machine isa past foreign consumption, the importation of he {a the Philpines te sbjct to VAT Boause the VAT-exemption flint ony eran profesnal rhowehald eects brand new Pane bran ew BM aptope | computers 40.000 each oF ised pt P0000, of sod Phone 3 =] 20000 of sed elstor +400, doles, pparl and travelingbag —| 0 sed aptp, IPhone 45 eaeuawr, clothes, and apparel are apparent a ets which are past consumptions; Renee, these ar exempt from VAT Intureand quanti ofthe Phone 6 18M lptps and desitop computers Incmsistent with the concept of personal effects These tent are weston for domes consumption hence subjects VAT. 3(chapter 2— Value Added Tax on importation (Chapter 2- value Added Taxon importation + Simply tated, nde cots encompass al costs af portation incurred poe to the witawal ofthe goods from the warehouse af the Bureau of Customs, except unaicalo ga payments made astration 3 ‘While In Dubai. Mis. aca bought a car nd numerous pieces of jewelry fom her salaries as OFW. She Intended to sll the Jewelry to her fends and {ownsfll inthe Phiipnes Won her contract ended, Mrs Wace brought theca andthe jewelry tothe Philippines ‘The iportaion ofthe cars vatble since ts nota persona effect. The lees of jercs are in commer quantiy which maker them clearly personal rms hence vetable ‘The duciile value, also called trnsaction vou, refers to the total value ‘sed by the Bureau of Cstoms in determining customs duties, uchas: A. Costo'the goods 2 Fregtt Insurance (Other :harges and cost to bring goods herein Import that are exempted by spechl laws, treaties or internation tgreements to which the Philpne government isa signatary is mot subi {othe VAT on importation uta value encompasses all costs incurred in bringing the goods upto Pipi ort nd prior wo any other inland costs of import. “THE VATON IMPORTATION aston day ie computed ar: Duele alex Exchange rate at of Duy Other importation of goods is subject to VAT regardless of wheter the: 1 importers engaged oF not engaged in trade or business 2. importers aVAT ornon-VAT business 4 Importation for business or personal use ‘4 non-resident sels engaged or not engagedin business [Asa consumption tx, the VAT on importation apples without regan to jpurpose ofthe importation and whether or not the sellers or buyers a ‘engaged in business, basic “Tadng Corporation imported goods from abroad for domestic sale. bel ae the details of he importation alu sup’ voice 2000000 eostsncurred to bringgoodst0 Pilppine port 70,000 charges elore withdrawal of goods cluding actaton fe pdt axer 85000 sion “0% of oods rom BOC warehouse to warehouse In Makati ly 20000 4 dts hall ste computed a= Presumption of vatability Importation is generally subject to VAT unless it canbe proven as © Under any of those conditions dscussed herein oF under a provision of Specs aw or treaty, The burden of proof in establishing VAT exempt ests upon the importer. of supplier's voice 2000000 to bring gos the Pipes zu ‘Tax basis ofthe VAT on importation ee er Fzaron00 ‘The VAT on Importation eomputed a 12% ofthe total landed costo is Imporation om Composition oftanded cost: 5 ibe? 1 Dutble value ee B. Okerin land costs 2070000 1. Custom ty ost pid before withdrawal of ods 2. else ox iany r 1,000 3 ther land cont, suchas: 202.00 a. Binkecharge Arse charge Pzas700 1 rokeragetee {Wharfage due VAT rate a Arastre charge {Documentary stamp tax ae Wharage due ‘import processing fees 3 aschapter 2 = Value Added Tx on Importation (Chapter 2—Value Added Taxon portation itusration 2 comprehensive Mant" tandong imported a sports car fom the US for personal us. 7 {blung shows deta the charges othe importation: | 8 Soljecto fina withholding VAT The importot services is generally subject toa final withholding VAT, except es ecto nates nae wes aaa « rare 2 Be trearcennte tte Geer ei al rie een ‘of Services from abroad should be subject to VAT regardless of the place anes eae ie rennet i ant Beira a afar gamed yen Src ag a eee “The relevant exchange rate per Bureau of Customs Memorandum circu non-residents cannot be obligated to file tx returns duet terior TEE The wnportation oso o P,510 excise tax and 30% tari ate ea a nthe resident buyer obligated to “withhold” the VAT and to the sane tothe government. Ths, the term ‘final withholding VAT “The dulable value and customs dues shal be computed 35 iT is deemed passed-on by the non-resident service provider which, Purchase price $50,000 Js ithbeld by the resident purchaser ofthe service Insurance rari 500 wae ana ng tax, the obligation to withhold the VAT technically exits Datiablevaluein $ = Bis00 if ‘Mulkpyby- Exchange rate * 5.00 service fs rendered within the Philippines: and Duta vals in Peso PF zoas00 payer purchaser of the service i an individual engaged in business Milpy by: Rate of ty a alcorporation customs duty Poms Iso obligation to withhold the VAT ifthe payor isnot a busines, “The londd ost an value add tax are computed a porate purchasers of service. Moreover, tests of taxation of Dtiabe value P 2308500 | Is determined by the place where the service ts rendered and not eae e92580 vere the output ofthe service willbe ultimately used. Hence the ome 633.510 be rendered within tobe subjected othe witholding tx. Other charges loss Tanded eos Fsre0375 n Muluplyby VAT rate on import —_—_1206 {VAT on importation aes ‘The VA shal be ald to the Bureau of Customs (800 wing form ye BOC. sought the help of Mr. Putin a repairman doing busines in ts malurtining machinery i the Pippin. The contact, 1,000,000. Eagle Company shall pay P120,000 (12% x PIM) final VATE te BIR Import OF SERVICES Putin sot engagsin busines in Asta? The core ‘he purchase of services rom non-residents maybe fj to the 12 fil mithoklng VAT. Me. Pai conse Pe Vatexempt engaged business. 2 Subject tospecifie percentage tax 36 37Chapter 2 Value Added Tax on importation Chapter 2~ ale Added Taxon importation ‘a wharf Eagle Company is non-profit insiation? The contract Pie 971 Wa a ial eon VAT ven naweroftcreratos er ouired witha LVATAMLE INPORT OF SERVICES ‘Alother of mort of serie eof mr sry be wl ding VT a alin Was computed a 12 of te ina ice Solingen anos ant ited ph a Serene sea suet desma paseo yh om net a and “withheld” by the resident payor-withholding agent. * 4 What Eagle Company sam cone loca? The CONTE Pie Wt ne What aa ama nt wnat VAT Bese ere sto ee are he cunty (ue nar-tesiden) by ee tion. ramples of table import of services: Use ora po 4 Leseoreseofropersaor opr resol yee Ser ‘iowraer companies wi reapet nce premiums payable to non-residents ° ‘ther semcerndeed inthe Piipines by on-esiens tustration2 heaton ent raveling sales agents asked te since A Tt 8 Ms Wont omg buses arent hep Nin ial 2 GPS racking vee in bis x for 300.000, sr Wong sel pay 736,00 (12 130000) fia wiholng VAT ei Fou Corporations alcense anh se race of Rol non fanaior During te mons Seton et pay P0000 oes final wielding VAT shall be query: HOT e-teng snot eng abuse in China? The anrac e Wha ere 9 fal wiolig VAT since he wl Be Pres in bine: a aged ft i ot businessman? The contact pric sal Wat Mt eokang YAT bcos nol x obaation a et Jornada engaged in busines: Rss 36000 \VAT-EXEMPT IMPORT OF SERVICES AT ering are exept rom te nal withholing VAT The lowing rer frm noesents whe the service render Sorat ae P on0m ret serves rom no-esdets when he ndvdul pur Bie ree P 800000208) bred temegedn nes a nen ens rm non-residents by VAT exempt persons rh agro! that the contract prices VAT in ceonnne locators pric ls VAT Inclusive the VAT isnot deductible the goss royalty because the Withholding VAT Is not taxon income at Se oredr ae sujet 6 30% fa tn ease the service is rendered by noncestdents to ecoone neaer In case aking, VAT is not imposible ince ecozane ests Sia on esdens. The withholding reqlrement cannot De coma ldens, Hence, the transaction shall Be exempt om wae VAT (See BIRITAD Rung Nox 311-14 dated November 4 Und 316-1 dated November 24,2014) 2 eo pan prea Sra aes as Ps Sris raise eect seiner en nto cds Ao Sk mrOnT OF SERVICES SPECIFICALLY SUBJECT TO PERCENTAGE 7% ng Plant in the Philippines for P220,000. tarot oan eon seep The only son of tsurance cover from abroad. The prema pay the folowing VAT on importation to the BOC: Cie cies directly soured abroad I abject 02 5¥ Pet jeost etsy ame tothe 2000 (te policyholder shal pay the same othe BIR, S Eom