Strategic goods

The deliveries and/or import of taxable goods designated as strategic goods are exempt from VAT. The designation of strategic goods is made through a government regulation. Currently, the following goods are included:

a.capital goods in the form of machinery and plant and equipment required for the manufacturing of taxable goods (please refer to page 78 on the relevant tax concession);

b.animal husbandry products, including hunting and trapping, and fishery products, including the capture and cultivation of fish;

c.raw hides and skins which were not tanned;

d.seeds and seedlings for agricultural, plantation, forestry, farm and animal husbandry products;

e.cattle, poultry and fish feed, and the raw materials for manufacturing these;

f.raw materials of silver craft in the form of granules and/ or bars;

g. basic flats with size 21m² up to 36m²;

h. electricity, except household electricity exceeding 6,600 VA;

i. clean water distributed through pipes by drinking water companies.

Other VAT exemption schemes

To support the achievement of certain national objectives, VAT is exempt on the imports and/or deliveries of the following taxable goods or taxable services:

a.weapons, ammunition, and various other appliances for use by the armed forces and the state police;

b.equipment and spare parts for providing boundary data and aerial photographs used by the armed forces;

c.polio vaccines for use in the National Immunisation Program;

d.general education and religious books;

e.low-cost houses, low costs flats with size less than 21m², labor low-cost accommodation, and student accommodation with certain threshold;

f.services rendered for the construction of low-cost accommodations in point (e) and places of worship;

g.rental of low-cost houses and low-costs flats less than 21m²;

h.certain port services rendered to shipping companies that are serving international routes.