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.
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Manila Bulletin · 3 days ago
Manila Bulletin reports that the Philippine BIR has clarified that bilateral tax treaties do not exempt foreign digital service providers from the country's 12% VAT. The new guidance, issued in RMC No. 59‑2026 on June 2, 2026, requires non‑resident providers to register and file VAT returns, and outlines reverse‑charge rules for cross‑border B2B services. It also details how online booking platforms and pre‑existing subscriptions are taxed.
The Manila Times · 5 days ago
The BIR expanded the VAT exemption list for essential medicines in April 2026, increasing the number of exempt chronic‑condition drugs to 2,263 from 2,242 in December 2025. This move aims to reduce out‑of‑pocket healthcare costs and boost demand for locally produced generic medicines. The commentary notes potential benefits for domestic manufacturers but highlights ongoing challenges such as high out‑of‑pocket spending and supply‑chain constraints.
Rappler · about 2 months ago
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.
Manila Times · 2 months 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 · 2 months 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 · 3 months 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.
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Key Takeaways
It becomes effective early April 2026, 15 days after publication in the Official Gazette or on the BIR website.
The exemption covers sale and purchase of indigenous natural gas, electricity generated from it, and ancillary services directly linked to power generation.
Businesses must obtain certification from the Department of Energy, with gas transactions validated by the Oil Industry Management Bureau and power producers confirmed by the Electric Power Industry Management Bureau.
The exemption is implemented under Republic Act No. 12120, the Philippine Natural Gas Industry Development Act.
Primary source
Read the full article at VatCalcThis summary was published on VATfaqs.com on 24 March 2026. It relates to VAT developments in Philippines. The original source is VatCalc.
