- Export-oriented enterprises (EOEs) not registered with investment promotion agencies can still qualify for VAT zero-rating and exemption under the CREATE MORE law.
- EOEs must derive at least 70% of their total annual production or services from export sales in the preceding taxable year to qualify.
- VAT zero-rating applies to local purchases and VAT exemption applies to importations, provided goods or services are directly attributable to export activity.
- Covered services include janitorial, security, financial, consultancy, marketing, administrative support, and more.
- EOEs that fail to meet the 70% export sales threshold lose VAT privileges for the following year.
Source: thephilbiznews.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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