BIR Issues VAT Exemptions for Indigenous Natural Gas and Electricity Under New Regulations

• BIR issued Revenue Regulations No. 2-2026 granting VAT exemptions for transactions involving indigenous natural gas, aggregated gas, and electricity generated from them, as per Republic Act No. 12120.
• Exemptions apply to sales and purchases by aggregators, resellers, suppliers, authorized electricity generation facilities, and end-users, but only for the indigenous portion of aggregated gas.
• VAT exemption also covers electricity and ancillary services produced from indigenous natural gas or qualifying aggregated gas.
• Entities must secure endorsement and certification from the Department of Energy to qualify.
• The regulation aims to lower energy costs, promote cleaner energy, and support national energy security.

Source: globalvatcompliance.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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