Conditions for an export sale to qualify as VAT zero-rated.

In order for an export sale to qualify as VAT zero-rated, the following conditions must be
present:

1. There was sale and actual shipment of goods from the Philippines to a foreign country;
   
2. The sale was made by a VAT-registered person;
   
3. The sale was paid for in acceptable foreign currency or its equivalent in goods or
   services; and
   
4. The payment was accounted for in accordance with the rules and regulations of the
   BSP.
   

Any VAT-registered person claiming VAT zero-rated direct export sales must present at least three (3) types of documents, namely:

1. Sales invoice as proof of sale of goods;
   
2. Export declaration and bill of lading or airway bill as proof of actual shipment of goods
   from the Philippines to a foreign country; and
   
3. Bank certificate advice, certificate of bank remittance or any other document proving
   payment for the goods in acceptable foreign currency or its equivalent in goods and services. (Philex Mining Corporation vs. Commissioner of Internal Revenue, CTA Case No. 8517, October 09, 2013)