SBN-839: Exempting Tollway Operations from VAT

An Act Exempting Tollway Operations From The Value Added Tax, Amending For This Purpose Sections 108 And 109 Of The National Internal Revenue Code of 1997, As Amended

  • 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 exempt the services of tollway operators from the coverage of VAT.
  • 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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