Sales by a VAT taxpayer from the Customs Territory to a PEZA entity are considered export sales under Executive Order (EO) 226 and Revenue Memorandum Circular (RMC) 74-99.

Input VAT must be declared on domestic purchases of goods and services at the end of the corresponding taxable quarter where purchases of goods were consummated, as evidenced by VAT invoices and where purchases of services were paid, as evidenced by VAT official receipts.
Sales of goods, properties and services by a VAT-registered supplier from the Customs Territory to an ECOZONE enterprise shall be treated as export sales. If such sales are made by a VAT- registered supplier, they shall be subject to VAT at zero percent (0%).
Input VAT on domestic purchases of goods or properties shall be allowed as tax credit to the purchaser only upon consummation of the sale, which means upon issuance of the seller of the VAT sales invoice evidencing the sale of goods/properties. On the other hand, the input VAT on purchases of services shall be available as tax credit to the purchaser only upon the payment of the compensation or fee, i.e., upon issuance by the seller of the VAT official receipt for the payment for services performed to yet to be performed. Philex Mining Corporation v. Commissioner of Internal Revenue, C.T.A. Case No. 7587, December 8, 2009