Small Businesses & Special Imports

Returning Residents' Effects

Importation of personal and household effects by returning Filipino residents or resettling non-resident citizens is VAT-exempt, provided the goods are also exempt from customs duties.

Settlers' Professional Tools & Effects

Importation of personal effects and professional tools by overseas Filipinos or foreign settlers is VAT-exempt if intended for personal use in quantities fitting their profession, excluding commercial machinery or vehicles.

Non-VAT Registered Export Sales

Export sales made by small businesses or individuals who are not registered under the VAT system are completely exempt from VAT rather than being zero-rated.

Small Business / Low Turnover Threshold

Sale or lease of goods, properties, or performance of services is VAT-exempt if the business's total gross annual sales do not exceed the statutory threshold of 3 million pesos.

Export-Oriented Enterprise Importations

Importation of goods by an export-oriented enterprise is VAT-exempt, provided the imported items are directly attributable to export activities and the company's export sales comprise at least 70% of its total annual production.