Whether to issue a single Purchase Confirmation or multiple ones for bulk exports

Question

I have an inquiry regarding the zero-rated Purchase Confirmation. Our company intends to manufacture ships for export. Since the equipment and materials for the ships will be sourced domestically before the ships themselves are exported, we intend to issue zero-rated tax invoices for the equipment and parts. For example, if we have contracted for multiple ships with a specific supplier based on a price set per vessel, I would like to inquire: 1. Is it sufficient for the supplier to issue a single Purchase Confirmation for the total contract amount, or 2. Should multiple Purchase Confirmations be issued, one for the amount of each individual vessel?

tflow_expert · Answer

Since a Purchase Confirmation is a document applied for by a party intending to purchase raw materials or components for foreign exchange earnings in order to receive a zero-rated VAT application, it cannot be issued for an amount exceeding the actual foreign exchange amount to be earned through export. Aside from this amount limitation, there are no restrictions on whether the company decides to issue it as a single document or split it into multiple documents, depending on its specific transaction circumstances.

Whether to issue a single Purchase Confirmation or multiple ones for bulk exports

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