The city of San Fernando, Pampanga, Philippines has announced that water bills will no longer carry the 12% Value-Added Tax (VAT) starting March 2026. Residents will receive full refunds for VAT collected between 17 November 2025 and February 2026. The measure, announced by Mayor Vilma B. Caluag, aims to reduce household costs and ease living burdens.
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Manila Times · 5 days ago
Philippines: The Supreme Court has upheld the constitutionality of the VAT refund law for foreign tourists, confirming that the incentive is a valid policy measure to promote tourism. The law allows non-resident foreign tourists to claim VAT refunds on purchases of at least P3,000 per transaction from accredited retailers, provided the goods are taken out of the Philippines within 60 days of purchase.
Deloitte · 5 days ago
Philippines' VAT refund rules have evolved significantly since 1987, with recent changes under the Create More Act affecting zero-rated taxpayers. The Supreme Court clarified processing periods and documentation requirements in December 2025, tightening the 90+30 day rule.
ManilaTimes · 6 days ago
Philippines Supreme Court upholds constitutionality of VAT refund law for foreign tourists, confirming the policy as a valid tourism incentive.
Global Nation · 6 days ago
Philippines Supreme Court declares VAT refund for foreign tourists constitutional, upholding Republic Act No. 12079. The decision affirms the state’s right to offer fiscal incentives to boost tourism without violating equal protection.
GMA News · 6 days ago
Philippines Supreme Court upholds law allowing VAT refunds for foreign tourists on purchases of at least P3,000, valid for goods taken out within 60 days.
Manila Times · 7 days ago
Philippines: The article outlines how VAT refund rules have evolved since 1987, detailing changes in claim periods, documentation, and appeal procedures.
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Key Takeaways
Starting March 2026, water bills will no longer carry the 12% VAT.
Refunds will cover VAT collected from 17 November 2025 to February 2026.
Mayor Vilma B. Caluag announced the measure in a public address on 14 February 2026.
Primary source
Read the full article at TribuneThis summary was published on VATfaqs.com on 15 February 2026. It relates to VAT developments in Philippines. The original source is Tribune.
