Tax (PEZA) – VAT Exemption

This article explains how PEZA-registered clients (or other export-oriented entities) can qualify for VAT exemption (zero-rating) when transacting with Sprout.

1. Requirements for VAT Exemption

To process a VAT exemption, clients must present the following documents:

• PEZA Certificate and/or Registered Activities documentation

• Sprout will review the documents to assess sufficiency before endorsing the request.

⚠️ VAT exemption will only take effect once all required documents have been submitted and approved.

2. Acceptable Proof for VAT Zero-Rating

Clients can use either Item (1) or Item (2) depending on their registration status:

Item (1) – DTI-EMB Certification

• Confirms that the Export-Oriented Enterprise (EOE) meets the 70% export sales threshold.

• Applicable to corporations or entities not registered with PEZA, BOI, or any IPA, or whose IPA registration has expired.

• This pathway allows VAT zero-rating for exporters even without active IPA incentives.

Item (2) – Certification from PEZA, BOI, or other IPA

• Serves as proof of VAT zero-rating for entities actively registered with an IPA.

📌 Note: Only one of the above items is required, depending on your registration status. Ensure all documents are complete to avoid delays in VAT zero-rating approval.

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