Thursday, July 23, 2009

Tax Treatment of Sale of Good and Services from the Custom Territory to Freeport Zone

Query - What is the VAT treatment of sale of goods/services from Custom Territory (outside freeport zone) to Freeport Zone like Subic Freeport Zone (SPZ), Clark Freeport Zone (CFZ), Poro Poro Freeport Zone (PPFZ)?

Answer - If the seller is VAT registered person, the sale is considered zero-rated, if the seller is non VAT taxpayer, the sale is VAT exempt. The Freeport zone cannot claim input VAT on this purchase.

Please see RMC 50-07 for more info ftp://ftp.bir.gov.ph/webadmin1/pdf/35890rmc%20no.%2050-2007.pdf

Although the RMC did not mention PEZA, I believe that the RMC also applies to PEZA company.



Magbayad ng wastong buwis. Help Philippines.

Juan Dela Cruz

No comments:

Post a Comment