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Value Added Tax (VAT) for Pass-Through Charges                                                                     

In compliance with the BIR Revenue Regulation (RR) 21 – 2021 and BIR Revenue Memorandum Circular No. 49-2022, the National Grid Corporation of the Philippines (NGCP) implemented VAT charges in its November 2022 power bill. The Transmission VAT charges shall be collected from Clark Freeport Zone locators starting November 2022 billing, which will be remitted to NGCP --- the transmission service provider of the Philippines.

For Registered Export Enterprises claiming VAT zero-rating, kindly provide the following documents:

  1. Endorsement from Clark Development Corporation (CDC) for VAT Zero-rating on local purchases/ Certificate of Registration and Tax Exemption (CORTE)
  2. BIR – Certificate of Registration (BIR Form No. 2303)
  3. A Sworn Affidavit made by authorized officer of the company stating the allocation factor used in the production/service of export business and its basis of allocation

The abovementioned documents will be forwarded to NGCP for their evaluation.

Please note that Clark Electric is a registered locator at Clark Freeport Zone prior to the effectivity of CREATE law, thus, its electric distribution charges within the Zone remain to be VAT-exempt. However, VAT for pass-through costs such as the Generation, Transmission, and System Loss Charges from power suppliers shall be billed accordingly.

  For any inquiries on the foregoing, please send us an email at or contact us at

  telephone numbers (045) 599-3146/599-7091.


Thank you.





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