ReSA - THE REVIEW SCHOOL OF ACCOUNTANCY

CPA Review Batch 46  October 2023 CPA Licensure Examination

TAX-302
TAXATION A. TAMAYO  E. BUEN  G. CAIGA  C. LIM  K. MANUEL

VAT-EXEMPT TRANSACTIONS
1. VAT-Exempt Transaction Defined
“VAT-exempt transactions” refer to sale of goods or services which, by their nature, are specifically listed in and
expressly exempted from VAT, under the Tax Code, without regard to the tax status of the party in the transaction.
Transactions not subject to VAT (output tax) are not entitled to tax credit of VAT (input tax) on purchases. The person
making the exempt sale shall not bill any output tax to his customers because the said transaction is not subject to
VAT.

2. VAT-Exempt Transaction Under Section 109

UNDER TRAIN
(a) Sale or importation of:
-agricultural and marine food products in their original state,
-livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption; and
-breeding stock and genetic materials therefor;
(b) Sale or importation of:
- fertilizers, seeds, seedlings and fingerlings;
- fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of
finished feeds
-(except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals generally considered as
pets);
(c) Importation of personal and household effects
-belonging to residents of the Philippines returning from abroad and
-non-resident citizens coming to resettle in the Philippines;
-Provided, That such goods are exempt from customs duties under the Tariff and Customs Code of the Philippines;
(d) Importation of:
professional instruments and implements,
wearing apparel, domestic animals, and
tools of trade, occupation or employment,
personal and household effects
--belonging to:
persons coming to settle in the Philippines or
Filipinos or their families and descendants who are now residents or citizens of other countries, such parties hereinafter
referred to as overseas Filipinos,
in quantities and of the class suitable to the profession, rank or position of the persons importing said items,
for their own use and not for barter or sale, accompanying such persons, or arriving within a reasonable time:

Provided, That the Bureau of Customs may, upon the production of satisfactory evidence that such persons are actually
coming to settle in the Philippines and that the goods are brought from their former place of abode, exempt such goods
from payment of duties and taxes:
Provided, further, That vehicles, vessels, aircrafts, machineries and other similar goods for use in manufacture, shall not fall
within this classification and shall therefore be subject to duties, taxes and other charges;

(e) Services subject to percentage tax;

(f) Services by agricultural contract growers and
milling for others of palay into rice, corn into grits and sugar cane into raw sugar;
(g) Medical, dental, hospital and veterinary services, except those rendered by professionals;
(h) Educational services rendered by:
- private educational institutions, duly accredited by DepEd, CHED and Technical Education and Skills Development Authority
(TESDA), and
-those rendered by government educational institutions;
(i) Services rendered by individuals pursuant to an employer-employee relationship;
(j) Services rendered by regional or area headquarters 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;
(k) Transactions which are exempt
-under international agreement to which the Philippines is a signatory or
-under special laws except those granted under PD No. 529
(l) Sales by agricultural cooperatives duly registered and in good standing with the Cooperative Development Authority to their
members as well as sale of their produce, whether in its original state or processed form, to non-members; their importation of
direct farm inputs, machinery and equipment, including spare parts thereof, to be used directly and exclusively in the production
and/or processing of their produce;
Sale by agricultural cooperatives to non-members can only be exempted from VAT if the producer of the agricultural products sold
is the cooperative itself. If the cooperative is not the producer (e.g., trader), then only those sales to its members shall be
exempted from VAT; It is to be reiterated, however, that sale or importation of agricultural food products in their original state is
exempt from VAT irrespective of the seller and buyer thereof, pursuant to Subsection (a) hereof;
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(m) Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered and in good standing with the
Cooperative Development Authority;
(n) Sales by non-agricultural, non-electric and non-credit cooperatives duly registered and in good standing with the Cooperative
Development Authority; Provided, That the share capital contribution of each member does not exceed P15,000 and regardless of
the aggregate capital and net surplus ratably distributed among the members;
(o) Export sales by persons who are not VAT-registered;
(p) Sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or business or
real property utilized for low-cost and socialized housing as defined by Republic Act No. 7279, otherwise known as the Urban
Development and Housing Act of 1992, and other related laws,
residential lot valued at One Million Five Hundred Thousand pesos (P1,500,000) and below, or house and lot and other residential
dwellings valued at Two Million Five Hundred Thousand (P2,500,000) and below (under RR 4-2021),
house and lot, and other residential dwellings valued at Four million two hundred thousand pesos (P4,200,000) and below
(P2,500,000 and below under RR 4-2021):
Provided, that beginning January 1, 2024 and every three (3) years thereafter, the amounts herein shall be adjusted to present
values using the Consumer Price Index, as published by the Philippine Statistics Authority (PSA).
Per RR 4-2021, beginning January 1, 2021, the VAT exemption shall only apply to:
(1) sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or
business,
(2) sale of real property utilized for socialized housing as defined by Republic Act No. 7279,
(3) sale of house and lot, and other residential dwellings with selling price of not more than Two million pesos
(P2,000,000) as adjusted to P3,199,200 in 2011 using the 2010 Consumer Price Index values.
(Sec. 2, RR No. 8-2021)
Note: Sale of parking lot in a condominium is a separate and distinct transaction and is not covered by the rules on threshold
amount not being a residential lot, house and lot or a residential dwelling, thus, should be subject to VAT regardless of the
amount of selling price.
(q) Lease of residential units with a monthly rental not exceeding P15,000;
(r) Sale, importation, printing or publication of books, and any newspaper, magazine, journal, review bulletin, or any such
educational reading material covered by the United Nations Educational, Scientific and Cultural Organization (UNESCO)
Agreement on the importation of educational, scientific and cultural materials, including the digital or electronic format thereof.
Provided, That the materials enumerated herein are not devoted principally to the publication of paid advertisements . Provided
further, That the materials enumerated herein are compliant with the requirements set forth by the National Book
Development Board pursuant to R.A. No. 8047.
(s) The transport of passengers by international carriers;
(t) Sale, importation or lease of passenger or cargo vessels and aircraft, including engine, equipment and spare parts thereof for
domestic or international transport operations; Provided, however, that the exemption from VAT on the importation and local
purchase of passenger and/or cargo vessels shall be subject to the requirements on restriction on vessel importation and
mandatory vessel retirement program of Maritime Industry Authority (MARINA);
(u) Importation of fuel, goods and supplies by persons engaged in international shipping and air transport operations. The fuel,
goods and supplies shall be used for international shipping or air transport operations. Thus, said fuel, goods and supplies shall be
used exclusively or shall pertain to the transport of goods and/or passenger 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 at any other
Philippine port is for the purpose of unloading passengers and/or cargoes that originated from abroad, or to load passengers
and/or cargoes bound for abroad: Provided, further, that if any portion of such fuel, goods or supplies is used for purposes other
than that mentioned in this paragraph, such portion of fuel, goods and supplies shall be subject to twelve percent (12%) VAT
(v) Services of bank, non-bank financial intermediaries performing quasi-banking functions, and other non-bank financial
intermediaries; such as money changers and pawnshops, subject to percentage tax under Secs. 121 and 122, respectively, of
the Tax Code
(w) Sale or lease of goods and services to senior citizens and persons with disability, as provided under Republic Act Nos. 9994
(Expanded Senior Citizens Act of 2010) and 10754 (An Act Expanding the Benefits and Privileges of Persons With Disability),
respectively;
(x) Transfer of property pursuant to Section 40 (C) (2) of the NIRC, as amended (merger or consolidation);
(y) Association dues, membership fees, and other assessments and charges collected by home owners asso ciatio ns and
condominium corporations;
(z) Sale of gold to the Bangko Sentral ng Pilipinas (BSP);
(aa) Sale or importation of prescription drugs and medicines for:
(i) Diabetes, high cholesterol, and hypertension beginning January 1, 2020; and
(ii) Cancer, mental illness, tuberculosis, and kidney diseases beginning January 1, 2021.
The exemption from VAT under this subsection shall only apply to the sale or importation by the manufacturers, distributors,
wholesalers and retailer of drugs and medicines included in the “list of approved drugs and medicines” issued by the
Department of Health (DOH) for this purpose.
(bb) Sale or importation of the following beginning January 1, 2021 to December 31, 2023:
(i) Capital equipment, its spare parts and raw materials, necessary for the production of personal protective equipment (PPE)
components such as coveralls, gown, surgical cap, surgical mask, n-95 mask, scrub suits, goggles and face shield, double
or surgical gloves, dedicated shoes, and shoe covers, for COVID-19 prevention;
(ii) All drugs, vaccines and medical devices specifically prescribed and directly used for the treatment of COVID-19; and
(iii) Drugs for the treatment of COVID-19 approved by the Food and Drug Administration (FDA) for use in clinical trials,
including raw materials directly necessary for the production of such drugs
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Provided, That the Department of Trade and Industry (DTI) shall certify that such equipment, spare parts or raw materials for
importation are not locally available or insufficient in quantity, or not in accordance with the quality or specification required.
Provided further, That for item (ii), within sixty (60) days from the effectivity of the CREATE, and every three (3) months
thereafter, the Department of Health (DOH) shall issue a list of prescription drugs and medical devices covered by this
provision.
Provided finally, That for items (i) and (iii) hereof, on the sale or importation of equipment, spare parts and raw materials for
the production of PPE components as well as the sale or importation of raw materials directly necessary for the production of
drugs for the treatment of COVID-19, the supplier/s or importer shall submit, for the purpose of availing the exemption,
the following:
(1) Certified true copy of “License to Operate”, issued to the manufacturer-buyer by the DOH-FDA authorizing the
manufacture of medical grade PPE components and drugs for the treatment of COVID-19; and
(2) "Sworn Declaration” from the manufacturer-buyer that the items shall be used for the manufacture of the PPE
components and drugs for the treatment of COVID-19
The importation of items under (i), (ii) and (iii) above shall not be subject to the issuance of the Authority to Release
Imported Goods (ATRIG) under Revenue Memorandum Order (RMO) No. 35-2002, as amended and may be released by the
Bureau of Customs (BOC) without the need for ATRIG. (Sec. 2 (2), RR No. 8-2021)

The exemption claimed under this subsection shall be subject to post audit by the Bureau of Internal Revenue (BIR) or the
Bureau of Customs (BOC), as may be applicable.
(cc) Sale or lease of goods or properties or the performance of services other than the transactions mentioned in the preceding
paragraphs, the gross annual sales and/or receipts do not exceed the amount of Three Million Pesos (₱3,000,000.00).
For purposes of these Regulations, the ₱3,000,000.00 gross annual sales shall comprise of the business' total revenues from
sales of its products, which are either goods or services, including non-refundable advance deposits/payments for services,
net of discounts, sales returns and allowances, covering the calendar or fiscal year. Sales incidental to the registered
operations of the business shall also be included pursuant to Section 105 of the Tax Code, as amended.
Self-employed individuals and professionals availing of the 8% tax on gross sales and/or receipts and other non-operating
income, under Sections 24(A)(2)(b) and 24(A)(2)(c)(2)(a) of this Code shall also be exempt from the payment of twelve
percent (12%) VAT.
For the purpose of the threshold of P3,000,000 (used to be P1,919,500), the husband and the wife shall be considered
separate taxpayers. However, the aggregation rule for each taxpayer shall apply. For instance, if a professional, aside from
the practice of his profession, also derives revenue from other lines of business which are otherwise subject to VAT, the same
shall be combined for purposes of determining whether the threshold has been exceeded. Thus, the VAT-exempt sales shall
not be included in determining the threshold.

A VAT-registered person may, in relation to Sec. 236 (H) of the 1997 Tax Code, as amended, elect that the exemption in Sec.
4.109-1(B) hereof shall not apply to his sales of goods or properties or services. Once the election is made, it shall be irrevocable for
a period of three (3) years counted from the quarter when the election was made except for franchise grantees of radio and TV
broadcasting whose annual gross receipts for the preceding year do not exceed ten million pesos (P10,000,000.00) where the
option becomes perpetually irrevocable.
3. VAT Exemption Under R.A. 11861 or the “Expanded Solo Parents Welfare Act”
a. Conditions for the 10% 1) Solo parent has a child/children with the age of six (6) years or under; and
discount and VAT 2) Solo parent is earning less than P250,000 annually
exemption
b. Application of the 10% Qualified solo parent’s purchase of the following goods from drug stores, pharmacies,
discount and VAT grocery stores, and similar establishments:
exemption subject to 1) Baby’s milk;
the guidelines issued by 2) Food supplements and micronutrients supplements;
DOH, in coordination 3) Sanitary diapers;
with FDA, Philhealth, 4) Medicines;
and DILG 5) Vaccines; and
6) Other medical supplements
c. Presentation of the Solo The Solo Parent shall present his/her SPIC and Solo Parent Booklet showing the
Parent Identification qualifications meeting the required conditions.
Card (SPIC) and Solo
Parent Booklet
d. Rules on the The grant of discount is only for the purchase of goods for the exclusive use and
determination of the enjoyment or availment of the solo parent’s child or children with the age of six (6) years
Amount of Discount or under:
1) Prescribed medicine, vaccine, and other medical supplements
2) Baby’s milk, food supplements and micronutrient supplements, and sanitary
diapers
e. Treatment of the 10% 1) Treated as ordinary and necessary expense
discount 2) Amount of sales that must be reported for tax purposes is the undiscounted selling
price and not the amount of sales net of discount.

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3) Income Statement of the seller must reflect the discount, not as a reduction of sales to
arrive at net sales, but as a deduction from its gross income.
4) Only the actual amount of the discount granted or a sales discount not less than the
statutory rate of 10%, whichever is higher, based on the gross selling price can be:
a) deducted from gross income, net of VAT, if applicable for income tax purposes,
and
b) from gross sales of the business enterprise concerned for VAT or other percentage
purposes.
f. Treatment of Input Tax The input tax attributable to the exempt sale shall not be allowed as an input tax credit
on Sale to Solo Parent and must be closed to the cost or expense account by the seller.
Exercise
A VAT-registered grocery store sells baby’s milk at an undiscounted selling price of P200 for 340 grams.

REQ 1 – Amount payable by the solo parent

2 - Entries in the book of the seller
3 – Net sales for VAT purposes
Answers:
REQ 1
Selling price (VAT-exempt) P200
Less: 10% discount 20
Amount payable by the solo parent P180
REQ 2
Debit Credit
Cash 180
Solo parent discount expense 20
Sales-VAT exempt 200
REQ 3
Gross sales (VAT-exempt) P200
Less: 10% discount 20
Net sales P180

2. Exercises

a. Based on the following current year data, determine the VAT-subject and VAT-exempt amounts:
Case 1 Case 2 Case 3
Selling price, condominium unit P2,000,000 P2,500,000 P4,500,000
Selling price, parking lot 500,000 800,000 900,000
Total P2,500,000 P3,300,000 P5,400,000
VAT-subject
Vat-exempt

b. The following information pertains to lease of property for the current year:
Apartment Commercial
house building
Case 1 – Rent per unit per month P 15,000 P 15,000
Annual gross receipts P2,500,000 P2,500,000
VAT-subject
VAT-exempt

Case 2 – Rent per month P 15,000 P 15,000

Annual gross receipts P3,500,000 P3,500,000
VAT-subject
VAT-exempt

Case 3 – Rent per month P 20,000 P 20,000

Annual gross receipts P3,000,000 P3,000,000
VAT-subject
VAT-exempt
Case 4 – Rent per month P 20,000 P 20,000
Annual gross receipts P3,500,000 P3,500,000
VAT-subject
VAT-exempt

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c. Based on the following current year information, determine the VAT-subject and the VAT-exempt amounts:
Husband Wife
Case 1 – Gross receipts, practice of profession P2,500,000 P2,000,000
VAT-subject
VAT-exempt
Case 2 – Gross receipts, practice of profession P1,800,000 P -
Gross receipts, beauty parlor 1,200,000
Gross receipts, trucking business 1,500,000 -
Gross sales, grocery store 1,500,000
Gross sales, agricultural food products (original state) 1,200,000
Gross sales, livestock - 1,300,000
Total P4,500,000 P4,000,000
VAT-subject
VAT-exempt
d. The following data taken from its books are presented to you by Fish Fresh, Canned and Dried, VAT-registered company:
Sale of locally produced canned sardines P1,000,000
Sale of newly hauled fresh sardines 1,500,000
Sale of canned sardines to a Subic Bay Metropolitan Authority accredited enterprise 500,000
Sale of locally produced dried fish 700,000
Importation of fresh fish from Alaska, USA 2,000,000
Importation of canned sardines from Portugal 3,000,000
How much is the total VATable local sales and importation and the output tax?
e. Compute the VAT due on the following importations made by different persons:
Importation of cows and bulls by a VAT-registered company P5,000,000
Importation of fighting cocks by a non-VAT registered person 4,000,000
Importation of turkey by VAT-registered person 3,000,000
Importation of race horses by VAT-registered person 2,000,000
Importation of livestock and poultry feeds by non-VAT registered person 1,000,000
Importation of ingredients to be used in the manufacture of finished fertilizer 500,000
f. Ms. ENA is a newly registered non-VAT taxpayer engaged in merchandising of car accessories on February 1, 2022. In
September 2022 her cumulative gross sales/receipts reached three million five hundred pesos (P3,500,000.00).
Question 1 – If she availed of the 8% upon her registration with the BIR on February 1. 2022 or upon filing upon filing of her
first quarterly income tax return, is she required to update her registration?
Question 2 – When is the required to update her registration from non-VAT to VAT?
Question 3 – Is she required to pay percentage tax since she exceeded the VAT threshold during the year?
Question 4 – How much percentage will she pay?
Question 5 – How much VAT will she pay?
Answers:
Question 1
Yes. She is required to update her registration from non-VAT to VAT within one month after the P3,000,000 VAT threshold is
exceeded (on or before October 31, 2022)
Question 2
Within one month after the P3,000,000 VAT threshold is exceeded (on or before October 31, 2022)
Question 3
Yes. She is required to pay percentage tax covering the sales/receipts and other non-operating income from February 1 to
September 30 due on or before November 25 (3,000,000 x 1% = 30,000).
Question 4
Percentage tax (3,000,000 x 1% = P30,000)
Question 5
VAT (3,500,000 – 3,000,000 = 500,000 x 12% = P60,000) beginning October 1.
g. Mr. Jose Diesto signified his intention to be taxed at “8% income tax in lieu of the graduated income tax rates and percentage
tax under Section 116” in his 1st Quarter Income Tax. However, his gross sales/receipts during the taxable year 2022 have
exceeded the VAT threshold as follows:
First quarter January P 250,000.00
February 250,000.00
March 250,000.00
Second quarter April 250,000.00
May 250,000.00
June 250,000.00
Third quarter July 250,000.00
August 250,000.00
September 250,000.00
Fourth quarter October 1,000,000.00
November 1,000,000.00
December 1,000,000.00
Total P5,250,000.00

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Question 1 – How much is the percentage tax?
2 – How much is the Value-Added Tax?
3 – When shall he update his registration from non-VAT to VAT?
Question 1 – How much is the quarterly percentage tax?
Percentage tax (3,000,000 x 1% = P30,000)
The gross receipts exceeded the VAT threshold of P3,000,000.00. Taxpayer shall be liable to pay income tax under
graduated rates pursuant to Section 24(A)(2)(a) of the Tax Code, as amended.
Since he availed the option of 8% income tax rate (not required to file the percentage tax return), he shall file
the required percentage tax covering the sales/receipts and other non-operating income, from January to
October due on or before November 25 without imposition of penalty if timely paid. He is likewise subject to
VAT beginning October 1. (page 26 RR No. 8-2018)
Taxpayer is likewise liable for business tax(es), in addition to income tax. For this purpose, the taxpayer is required to
update his registration from non-VAT to VAT taxpayer.
Percentage tax pursuant to Section 116 of the Tax Code, as amended, shall be imposed from the beginning of the year until
taxpayer is liable to VAT. VAT shall be imposed prospectively.

Question 2 – How much is the Value-Added Tax?

Output tax (250,000 + 1,000,000 + 1,000,000 =2,250,000 x 12%) P270,000
Mr. Diesta lost the option to pay the 8% commuted tax rate when his gross sales/receipts exceeded the three million
th
threshold during the 4 Quarter. For business tax purposes, he is subject to the 12% VAT prospectively starting October
of the taxable year.
Question 3 – When shall he update his registration from non-VAT to VAT?
He is also required to update his registration from non-VAT to VAT one month from the time that he
exceeded the P3,000,000 VAT threshold (on or before November 30, of the taxable year.)

g. LA Corporation is a VAT-registered entity and a holder of License to Operate issued by FDA to manufacture medical-grade PPE
components such as coveralls, gowns, surgical caps, surgical masks, n-95 masks, scrub suits, goggles and face shields, double
or surgical gloves, dedicated shoes and shoe covers for COVID-19 prevention.
During the period of April to June 2021, the company had the following transactions:
Importation of raw materials (not locally available) P2,000,000.00
Importation of capital equipment 25,000,000.00
Importation of raw materials (locally available) 1,000,000.00
Sale or transfer of raw materials to an affiliated company which is also a holder of License to Operate
by the FDA 500,000.00
How much of the above transactions shall be exempt from VAT?
Answer:

Importation of raw materials (not locally available) P 2,000,000.00

Importation of capital equipment 25,000,000.00
Sale or transfer of raw materials to an affiliated company also a holder of License to Operate by the FDA 500,000.00
Total P27,500,000.00
Importation of raw materials (locally available) is subject to VAT because they are locally available.
h. The Healthy Food Table, VAT registered, issued the following official receipt to a customer who is with his grandfather who is a
senior citizen:
Spring rolls P 390.00
Carrot pumpkin soup 180.00
Boston clam chowder 280,00
Baby back ribs (full) 990.00
Golden milk 190.00
Lemon grass iced tea 110.00
Chicken salad (regular) 480.00
Total good and beverage (VAT inclusive) P2,620.00
Question 1 – How much is the VAT-exempt sale?
Question 2 – How much is the sales discount for senior citizen?
Question 3 – How much is the service charge assuming the bill is net of the 10% service charge?
Question 4 – How much is the total amount due?

Question 1 – How much is the VAT-exempt sale?

Total good and beverage (VAT inclusive) P2,620.00
Less: VAT (2,620.00 x 12/112) 280.71
Total sales before VAT P2,339.29
VAT-exempt sale to senior citizen (1/2 x 2,339.29) P1,169.64
Question 2 – How much is the sales discount for senior citizen?
VAT-exempt sale to senior citizen (1/2 x 2,339.29) P1,169.64
Discount rate 20%
Sales discount P 233.92

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Question 3 – How much is the service charge assuming the bill is net of the 10% service charge?
Total sales before VAT P2,339.29
Less: Sales discount 233.92
Net sales P2,105.36
Service charge rate (10%) P 210.54
Question 4 – How much is the total amount due?
Total sales (VAT inclusive) P2,620.00
Less: VAT (12/112 x 2,620.00) 280.71
Senior discount 233.92 514.63
Net 2,105.37
Add: Service charge (10% x 2,105.36) 210.54
VAT on VAT-subject sale (12% x 1,169.64) 140.35 350.89
Total amount due P2,456.25

i. Identify the following transactions as of January, 2021: A) VAT-subject at regular rate B) VAT-subject at zero rate
C) VAT-exempt
1) Sale of an apartment house A
2) Sale of the right or the privilege to use any industrial, commercial or scientific equipment A
3) Services rendered by local construction and service contractors A
4) Services rendered by transportation contractors on their transport of goods or cargoes from one domestic port
to another domestic port A
5) Sale of electricity by generation, transmission and/or distribution companies A
6) Services rendered by a beauty parlor A
7) Services rendered by a funeral parlor A
8) Transport of passengers and cargoes by a domestic air or sea carriers from the Philippines to a foreign
country B
9) Sale of goods, supplies, equipment and fuel to persons engaged in international shipping and air transport
operations B
10) Sale of raw materials or packaging materials to export-oriented enterprise whose export sales exceed 70% of
the total annual production B
11) Sale of power or fuel generated through renewable sources of energy B
12) Services rendered to persons engaged in international shipping or air transport operations, including lease of
property for use thereof B
13) Sale of gold to Bangko Sentral ng Pilipinas C
14) Sale to non-resident buyer of goods assembled in the Philippines to be delivered to a resident in the
Philippines, paid for in acceptable foreign currency and accounted per BSP rules and regulations A
15) Distribution or transfer of goods to creditor in payment of debt or obligation A
16) Sale of goods or services to Asian Development Bank B
17) Sale of goods or services to Land Bank of the Philippines A
18) Services rendered by review schools for CPA Licensure Examination A
19) Educational services rendered by private educational institutions accredited by DEPED, CHED or TESDA C
20) Export sales of persons who are VAT-registered B
21) Export sales of persons who are not VAT-registered C
22) Sale of real property utilized for socialized housing C
23) Lease of residential units where the monthly rental per unit does not exceed P15,000 C
24) Lease of commercial units where the monthly rental per unit does not exceed P15,000 and whose annual
gross rentals amount to P3,000,000 C
25) Sale of agricultural foods products in their original state where the annual gross sales exceed P3,00,000 C
26) Sale of canned food products where the annual gross sales exceed P3,000,000 A
27) Performance of VAT-subject services where the gross annual receipts do not exceed P3,000,000 C
28) Medical services rendered by professionals A
29) Medical services rendered to confined patient by a doctor employed by the hospital C
30) Transfer of property through merger or consolidation C
31) Association due of homeowners association C
32) Sale of residential lot by real estate dealer the value of which is P1,500,000 A
33) Sale of medicine to Senior Citizens and Person With Disability C
34) Sale of lechong manok (take out) C
35) Sale of lechong manok in a restaurant A
36) Sale of cut flowers A
37) Sale of broom and walis tingting A
38) Sale of copra, molasses and ordinary salt C
39) Laboratory services rendered by hospitals C
40) Sale of medicine to in-patients of the hospital C

END
Be positive even if others are not. Work hard even if others have quit. Continue to dream big even if others have given up on theirs.
– Tamthewise ☺

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