Requested from DOE by R. Pillado at 05:23 PM on
Sep 23, 2022.
Purpose: Research
Date of Coverage: 09/01/2022 - 09/23/2022
Tracking no: #DOE-717074777888
Pillado 05:23 PM, Sep 23, 2022
To whom it may concern:
Good day!
May I ask po if there is a VAT transferred to household consumers with regards to installation of solar system in Residential Houses from a VAT-registered installation company. Is it zero-rated or not?
Thank you!
Division 08:31 AM, Sep 27, 2022
September 27, 2022
Dear Ms. Pillado,
Thank you for your request dated Sep 23, 2022 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for VAT on Sale or Installation of Solar Panel System in Residential Houses.
We received your request on Sep 23, 2022 and will respond on or before Oct 14, 2022 05:23:23 PM, in accordance with the Executive Order's implementing rules and regulations.
Should you have any questions regarding your request, kindly contact us using the reply function on the eFOI portal at https://www.foi.gov.ph/requests/aglzfmVmb2ktcGhyHQsSB0NvbnRlbnQiEERPRS03MTcwNzQ3Nzc4ODgM, for request with ticket number #DOE-717074777888.
Thank you.
Respectfully,
Joyanne Faye S. Angeles
FOI Receiving Officer
DOE - Records Management Division
Bureau 12:16 PM, Oct 10, 2022
October 10, 2022
Dear Reynalyn Pillado,
Greetings!
Thank you for your request dated Sep 23, 2022 05:23:23 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
Your Request
You asked for VAT on Sale or Installation of Solar Panel System in Residential Houses.
Response to Request
As per Renewable Energy Law (RA 9513) of 2008, Chapter VII – “General Incentives” Sec. 15 “Incentives for Renewable Energy Project Activities” (g) Zero Percent Value-Added Tax Rate – The sale of fuel or power generated from renewable sources of energy such as but not limited to biomass, solar, wind, hydropower geothermal ocean energy and other emerging energy sources using technologies such as fuel cells and hydrogen fuels, shall be subject to zero percent (0%) value-added tax (VAT), pursuant to the National Internal Revenue Code (NIRC) of 1997, as amended by Republic Act No. 9337.
All RE Developers shall be entitled to zero-rated value added tax on its purchases of local supply goods, properties and services needed for the development, construction and installation of its plant facilities.
This provision shall also apply to the whole process of exploring and developing renewable energy sources up to its conversion into power, including, but not limited to, the service performed by subcontractors and/or contractors.
In view of the above, the DOE recommends to directly coordinate with Bureau of Internal Revenue (BIR).
Your right to request a review
If you are unhappy with this response to your FOI request, you may ask us to carry out an internal review of the response by writing to Secretary Raphael Perpetuo Lotilla at rlotilla@doe.gov.ph Your review request should explain why you are dissatisfied with this response, and should be made within 15 calendar days from the date when you received this letter. We will complete the review and tell you the result within 30 calendar days from the date when we receive your review request.
If you are not satisfied with the result of the review, you then have the right to appeal to the Office of the President under Administrative Order No. 22 (s. 2011).
Your feedback is highly appreciated and will help us to improve our service:
https://forms.gle/U8UzxTF6GHvuPkFQ7
Thank you.
Respectfully,
Renewable Energy Management Bureau
FOI Receiving Officer
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