Under the new regulation:
- Exporters are now free from VAT liability on the local purchases they make, provided that these are for direct and exclusive use for their export business.
- Sales to registered exporter enterprises of raw materials, inventories, supplies, equipment, packaging materials, and other related goods, directly and exclusively used in registered projects, are to be free from VAT charges.
- Services for the direct and exclusive use of the exporters such as provision of basic infrastructure, utilities, and repairs and maintenance of equipment, which are also subject to the same VAT exemption.
Source: GVC
