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.
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.
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