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.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Fiscal Requirements · about 7 hours ago
Philippines: The BIR has extended the e-invoicing deadline to 31 December 2026, giving e-commerce businesses, large taxpayers and CAS/CBA users more time to comply. Taxpayers must issue e-invoices in XML, JSON or other BIR-approved formats via accredited systems, and sales data reporting will begin once the central system is operational.
BusinessWorld · 4 days ago
Philippines: The Court of Tax Appeals upheld the denial of Zuellig Pharma Asia Pacific Ltd's P59.81-million VAT refund claim after finding the company failed to meet documentary requirements. The court ruled that the lack of certificates of inward remittance for P2.88 million of zero-rated sales and non-compliant official receipts made the claim fatal.
BusinessWorld · 4 days ago
Philippines: Deloitte Philippines highlights that e-invoicing could curb corruption by improving tax transaction transparency, but notes the government’s limited tech capacity and lack of clear guidance as key challenges. Revenue Regulations No. 11-2025 set a March 2026 deadline for covered taxpayers to issue electronic invoices, later extended to 31 December 2026 by RR No. 26-2025.
BusinessWorld Online · 8 days ago
Philippines: The Supreme Court ruling and the CREATE MORE Act clarify VAT zero-rating eligibility for domestic market enterprises. DMEs that are high-value, with P15-billion investment or $100-million export sales, may qualify, while others may face 12% VAT on local purchases.
Manila Times · 16 days ago
Philippines: The Supreme Court has upheld the constitutionality of the VAT refund law for foreign tourists, confirming that the incentive is a valid policy measure to promote tourism. The law allows non-resident foreign tourists to claim VAT refunds on purchases of at least P3,000 per transaction from accredited retailers, provided the goods are taken out of the Philippines within 60 days of purchase.
Deloitte · 16 days ago
Philippines' VAT refund rules have evolved significantly since 1987, with recent changes under the Create More Act affecting zero-rated taxpayers. The Supreme Court clarified processing periods and documentation requirements in December 2025, tightening the 90+30 day rule.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
The exemption takes effect 15 days after publication, i.e., 16 April 2026.
Entities must obtain an endorsement from the Department of Energy and secure certification confirming the volume and percentage of indigenous natural gas sold during the taxable quarter, or for generation facilities, the use of gas and electricity produced.
Only the portion of aggregated gas linked to indigenous natural gas qualifies, and entities benefiting from the exemption are restricted from using certain other incentives.
The exemption covers indigenous natural gas, aggregated gas attributable to it, electricity generated using these gases, and ancillary services related to power generation.
The Department of Energy (DOE) issues the permits required for the exemption.
Primary source
Read the full article at Global VAT ComplianceThis summary was published on VATfaqs.com on 1 April 2026. It relates to VAT developments in Philippines. The original source is Global VAT Compliance.
