The following transactions are now subject to a 12 % VAT:.The sale of raw materials or packaging materials to a non-resident buyer, for delivery to a local export-oriented enterprise, to be used in the processing, manufacturing, packaging or repackaging in the Philippines;.The sale of raw materials or packaging materials to an export-oriented enterprise whose export sales exceed 70 percent of total annual productions; and.Activities considered export sales under Executive Order (EO) No. 226, or the Omnibus Investment Code of 1987, as well as other special laws. There is also the implementation procedures to file for VAT refunds, particularly the requirement to physically file such refunds at the Bureau of Internal Revenue's (BIR) Credit Audit Division. Many small businesses are currently short-staffed due to the quarantine and lockdown measures. This adds to their costs and causes delays to exporters and their customers.