- The Philippines issued new regulations granting VAT exemption for indigenous natural gas and related power generation, under Republic Act No. 12120.
- The exemption covers sales and purchases of indigenous natural gas, aggregated gas (only the indigenous portion), and electricity generated from such gas, including ancillary services.
- Transactions must be certified by the Department of Energy, with specific documentation required from suppliers and generation facilities.
- Safeguards are included to prevent misuse, and entities cannot claim similar incentives under multiple laws.
- The regulations take effect 15 days after publication on the BIR website on March 17, 2026.
Source: vitallaw.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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