VAT Zero-Rating
A VAT zero-rating certification is granted to companies deemed VAT zero-rated under special law and international agreement e.g. companies registered with PEZA, BOI or are embassies.
The VAT zero-rating certificate substantiates the company’s claim to be VAT zero-rated and serves as the legal basis for Meralco to apply VAT zero-rating on your company’s electric bill. Otherwise, the corresponding VAT shall be charged to your bill.
- For new applications:
- The VAT zero-rating certificate must be submitted with the service application requirements and renewed every year thereafter
- For existing customers of Meralco who are not yet tagged as VAT zero-rated:
- The certificate must be submitted to Meralco as soon as the certificate is granted by PEZA and renewed every year thereafter
- For existing VAT zero-rated customers who would like to renew their tagging:
- The new certificate must be submitted prior to the expiration date of the current certificate. e.g. for PEZA-accredited companies, this is usually at the end of the year (December 31)
Certificates must be submitted to Meralco before December 15, 2020 to ensure proper tax compliance, as well as proper implementation of pass through costs such as generation, transmission and other related charges.
In the event that PEZA Certification is still pending approval, a notarized statement of undertaking (SOU) must be submitted to Meralco together with a copy of your latest Meralco bill on or before December 15, 2020.
The SOU signifies that your company’s certification is still being processed and that the new certificate will be submitted to Meralco on or before January 31, 2021. Submission of the SOU will temporarily extend your company’s VAT-zero-rating until January 31, 2021 only.
Download a template of the SOU here.
Upon expiration of the letter of undertaking and in the absence of the new certificate, Meralco will not have any basis to apply the zero-rated VAT to your company’s electric bill. Therefore, Meralco will charge your company the corresponding VAT on your succeeding bills and reverse your January 2021 bill to reflect the VAT charges. Once the new certificate has been submitted, the VAT zero-rating will be applied to your succeeding bills.
A copy of the new certificate or letter of undertaking together with a copy of your latest Meralco bill can be submitted by your company to any of the following channels:
For customers with contracted capacity of at least 500kW:
- Relationship Manager
- Mail to: Corporate Business Group, 10F, Lopez Building, Meralco Compound, Ortigas Ave.
- Email: VATzerorating@meralco.com.ph
