Reader Thoughts on Retiring in the Philippines.
(Updated January 11, 2019)
Here’s a great comment I received from a reader. I wanted to make some additional comments and a couple of slight corrections, so I did, marked in blue.
Food is exempt of the 12% sales tax and many stores in the provinces don’t apply it to their sales or services at all. but at the big malls, it is applied, most surely.
Partially correct, but the way you have stated it could be a little misleading.
Food, in the raw, in its natural state is not taxed. Example, if you buy a kilo of rice, even though it may be milled and polished and cleaned, it is not taxed.
A head of cauliflower, as it comes from the field is not subject to taxation.
But something so simple as a basic can of beans is subject to the 12% VAT. When you go to the supermarket as I do at least once a week, you’ll soon see that the taxed items far exceed the tax-free items.