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.
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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.
