TOPIC:

VAT; Destination Principle And Cross Border Doctrine

Doctrines: 

• As a general rule, the VAT system uses the destination principle as a basis for the jurisdictional reach of the tax. Goods and services are taxed only in the country where they are consumed. Thus, exports are zero-rated, while imports are taxed.
• An exception to the destination principle; that is, for a zero percent VAT rate for services that are performed in the Philippines, “paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the [BSP]