Summary
RMC No. 62-2012 clarifies the reporting of gross receipts in power generation and distribution, including who pays the VAT on electricity sales and the remittance dates for deferred VAT.
Key points
- VAT on electricity and ancillary services. Distribution Companies and Electric Cooperatives pay the VAT on the sale of electricity and ancillary services together with the generation and other fees. They may not claim it as input VAT because it is a pass through charge.
- Offsetting. The amount paid for electricity and ancillary services, including the VAT, may be offset against the amount collected from the end-user.
- Deferred VAT. Outstanding deferred VAT in the books of Generation Companies, Aggregators, Market Operators, Retail Electricity Suppliers and other electricity suppliers, up to the billing period ending August 25, 2012, is remitted on or before November 20, 2012.
- VAT on earlier purchases. Distribution Companies and Electric Cooperatives remit the VAT on their purchases prior to August 25, 2012 to the suppliers on or before November 15, 2012.
- Penalties. Failure to remit within the prescribed dates warrants penalties, surcharges and interest under the National Internal Revenue Code of 1997, as amended, and its implementing rules.
Who is affected
- Distribution Companies and Electric Cooperatives
- Generation Companies, Aggregators, Market Operators, Retail Electricity Suppliers and other electricity suppliers
Deadlines and effectivity
- New process effective from billing period August 26 to September 25, 2012
- Distribution Companies and Electric Cooperatives remit VAT to suppliers: on or before November 15, 2012
- Deferred VAT remitted: on or before November 20, 2012
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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