- The Philippines’ Energy Regulatory Commission ruled that system loss charges on electricity bills are government-mandated pass-through costs and should not be included in the VAT base.
- If confirmed by the Bureau of Internal Revenue, the decision would remove the 12% VAT currently charged on the system loss portion of electricity bills.
- Distribution utilities must update their billing formats within 60 days to show system loss as a separate, non-VAT line item.
Source: tribune.net.ph
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.
