This document summarizes the tax treatment of sales between suppliers in the customs territory of the Philippines and registered enterprises in the Subic, Clark, and Poro Point Freeport Zones, which are operated as separate customs territories. Sales from suppliers in the customs territory to enterprises in the freeport zones will be considered export sales and subject to value-added tax (VAT) at a rate of 0% if the supplier is a VAT-registered taxpayer. If the supplier is not VAT-registered, the sale will be exempt from VAT. The document also clarifies definitions and coverage of VAT zero-rating in these transactions.
This document summarizes the tax treatment of sales between suppliers in the customs territory of the Philippines and registered enterprises in the Subic, Clark, and Poro Point Freeport Zone…