BIR Removes VAT on System Loss Charges in Power Bills

Electricity bills could get a little lighter as BIR removes VAT on system loss charges

Floyd Brenz., Philippine Canadian Inquirer September 14, 2026 Filipino electricity consumers could see some relief on their power bills after the Bureau of Internal Revenue removed the value-added tax on […]

BIR removes VAT on system loss charges in power bills

No more VAT on allowable system loss charges. 

BIR removes system-loss VAT from power bills - BusinessWorld Online

THE Bureau of Internal Revenue (BIR) said it removed the value-added tax (VAT) charge on system losses from power bills. The BIR issued Revenue Memorandum Circular (RMC) No. 97-2026 on Monday, identifying the allowable system loss charge as a government-mandated pass-through cost that does not form part of the gross sales of generation companies, the […]

BIR removes VAT on system loss charge

 The Bureau of Internal Revenue (BIR) issued a memorandum circular on Monday,  Sept. 14, removing the value-added tax (VAT) on the allowable system loss charge within the cap approved by the Energy Regulatory Commission (ERC). Memorandum Circular No. 97-2026 circularizes ERC Resolution No. 26 and formally recognizes the allowable system loss charge within the ERC-approved […]