Specifying Exempt Transactions
You can indicate whether a transaction is exempt. Exempt transactions are not subject to VAT and percentage tax.
To specify an exempt transaction:
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Create or edit a Philippines sales invoice or official receipts.
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Click the Philippines Invoicing subtab.
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Check the Exempt Transaction box.
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Click Save.
On printed Philippines sales invoices and official receipts that are exempt transactions:
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The word “EXEMPT” appears in the header.
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The phrase “THIS DOCUMENT IS NOT VALID FOR CLAIM OF INPUT TAX” appears in the footer.
When the Exempt Transaction box is checked regardless of the document approval status, the first printout includes both exempt header and footer details. When you reprint a document that has the Exempt Transaction box checked, both “REPRINT” and “EXEMPT” appear below the document title in the header. In compliance with BIR regulations, if a document is later modified and the Exempt Transaction box is cleared, reprinted documents still include the exempt header and footer details. For more information, see Reprint Label and Watermarks in Philippines Invoicing Documents.