- The Bureau of Customs (BOC) has implemented procedural code 062 in its Electronic-to-Mobile System for proper VAT application on local sales to domestic market enterprises (DMEs) or non-registered business enterprises (non-RBEs).
- Local sales of goods and services by registered business enterprises (RBEs) to DMEs or non-RBEs are subject to 12% VAT, unless exempt or zero-rated.
- VAT collection for these local sales falls under the Bureau of Internal Revenue (BIR), not the BOC.
- Release of goods for local sales requires presentation of BIR Form No. 0605, and BOC will collect duties and taxes (excluding VAT) on imported raw materials used in these goods.
- The location of the transaction or RBE (inside or outside economic zones) no longer determines VAT applicability for local sales.
Source: portcalls.com
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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