Expanded VAT Zero-Rating and Exemption for Export-Oriented Enterprises Under CREATE MORE Act

• Export-oriented enterprises (EOEs) can now enjoy VAT zero-rating on local purchases and VAT exemption on importations, not just those with tax incentives from investment promotion agencies.
• The CREATE MORE Act (RA 12066) expanded VAT zero-rating to all sales of goods and services to EOEs and exempted their importations from VAT.
• EOEs must meet a 70% export sales threshold of total annual production to qualify for these VAT benefits.
• Goods and services must be directly attributable and necessary to the export activity to qualify for VAT zero-rating or exemption.
• The DTI-EMB is responsible for certifying EOEs’ compliance with the export sales threshold; failure to meet the threshold disqualifies the EOE from VAT benefits for the following year.

Source: bdblaw.com.ph

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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