SBN-460: National Internal Revenue Code (Tollway Operations)

An Act Exempting Tollway Operations From the Twelve Percent (12%) Value Added Tax, Amending for the Purpose Sections 108 and 109 of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 9337

  • Proposes to amend Sections 108 (VAT on Sale of Services and Use or Lease of Properties) & 109 (Exempt Transactions) of the NIRC, as amended, in order to write into the law (literal) the real intent of legislators who framed the NIRC, and, that is exempting tollway fee from the coverage of VAT.
  • The bill is also a response to the Supreme Court ruling that the VAT-exemption should be expressly stated in the law, as stated: “Tax exemptions must be justified by clear statutory grant and based on language in the law too plain to be mistaken.”
  • If passed into law, this will revoke the 2010 ruling of the BIR which said tollway operators are liable for VAT, based on their position that the services of tollway operators are not included in the list of VAT-exempt transactions.


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