The Philippine Tax Whiz outlines the VAT exemptions available to natural gas stakeholders under Revenue Regulation No. 2‑2026. The guide explains that indigenous natural gas purchases and sales, as well as electricity generation using indigenous gas, are fully VAT‑exempt, and details the documentary requirements and eligible parties. It also highlights the need to indicate the exemption in the Quarterly VAT Declaration.
Purchase and sale of indigenous natural gas are fully VAT‑exempt; aggregated gas only the indigenous portion is exempt; electricity generation using indigenous natural gas is also VAT‑exempt.
Aggregators, resellers, suppliers, generation facilities, and end users of indigenous natural gas or electricity generated from it.
DOE‑OIMB endorsement and certification for sales, DOE‑EPIMB endorsement and certification for generation, a certified true copy of the DOE permit, and indication of the exemption in Field Item 14A of the Quarterly VAT Declaration.
They must enter the legal basis in Field Item Number 14A of the Quarterly VAT Declaration.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
Manila Times · 5 days ago
Philippine lawmakers have introduced House Bill No. 8827 to cap the value‑added tax on petroleum products during a national energy emergency. The bill would limit the VAT base to the Pre‑Emergency Reference Price, excluding any incremental emergency increase, and amend Sections 106(A) and 107(A) of the National Internal Revenue Code.
Global VAT Compliance · 12 days ago
The Philippine government has issued a VAT regulation exempting indigenous natural gas and related power generation activities. The exemption applies to indigenous natural gas, aggregated gas attributable to it, electricity generated from it, and ancillary services, subject to endorsement from the Department of Energy and certification of usage. The measure takes effect 15 days after publication, with specific limitations and permit requirements.
ABS-CBN News · 20 days ago
The Philippine Bureau of Internal Revenue (BIR) has announced that transactions involving indigenous natural gas are exempt from value-added tax (VAT). This decision applies to all such transactions and is intended to support indigenous communities.
VatCalc · 20 days ago
The Philippines has advanced the implementation of VAT exemptions for indigenous natural gas, electricity generated from it, and related ancillary services. The exemptions, part of Republic Act No. 12120, will take effect early April 2026 and require certification from the Department of Energy and validation by the Oil and Electric Power Industry Management Bureaus.
The Invoicing Hub · about 1 month ago
The Philippines will require structured e‑invoicing for large taxpayers and e‑commerce businesses from 1 January 2027, with the first phase of the mandate taking effect on 31 December 2026. The requirement is based on the TRAIN Law and BIR Revenue Regulation 011‑2025, but specific structured formats have yet to be defined. A second phase is expected later in 2027 to extend the mandate to all businesses and mandate transmission via a central platform.
Tribune · about 2 months ago
The city of San Fernando, Pampanga, Philippines has announced that water bills will no longer carry the 12% Value-Added Tax (VAT) starting March 2026. Residents will receive full refunds for VAT collected between 17 November 2025 and February 2026. The measure, announced by Mayor Vilma B. Caluag, aims to reduce household costs and ease living burdens.
