- The CREATE MORE law grants export-oriented enterprises (EOEs) VAT zero-rating on local purchases and VAT exemption on imports if they meet a 70% export sales threshold from the previous year.
- EOEs do not need to register for other tax incentives to access these VAT benefits.
- Goods and a wide range of services (including janitorial, security, financial, consultancy, marketing, and administrative support) qualify if directly necessary for export activities.
- If an EOE fails to meet the 70% export threshold, it loses VAT benefits the following year.
- The law helps EOEs avoid accumulating unutilized input VAT and reduces the need for slow and uncertain VAT refund claims.
Source: fiscal-requirements.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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