16-2005, and implementing the value-added tax (VAT) and percentage tax provisions of Republic Act (RA) No. 13-2018 took effect January 1, 2018, the effectivity date of the TRAIN Law. 16-2005 was the definitive guide to VAT and percentage tax, and the amendments introduced by the TRAIN Law through RR No. The sale of goods, supplies, equipment, fuel and services to entities engaged in international shipping or international air transport operations continue to be subject to VAT at a 0% rate. Also, the transport of passengers and cargo by domestic air or sea vessels from the Philippines to a foreign country is subject to 0 percent VAT.

Source: Manila Times April 28, 2018 16:07 UTC