As to taxability, it is either VATable or non-VATable. If VATable, it maybe subject to 12% regular rate or 0% under certain conditions. On the other hand, if non-VATable, it maybe VAT-exempt, covering those which are not subject to VAT but subject to other percentage tax (OPT) of 3%, or those which are neither subject to VAT nor to OPT. Seems so confusing, right?
