Reminder for Zero Rated VAT customers with certification expiring on December 31, 2016: 

Failure to update your certificate will result in the un-tagging of your account as “VAT-ZERO RATES/VAT EXEMPT” on Meralco’s records.   This will result to irreversible VAT charges in your billing statement.



What to submit:
  • New 2017 Zero Rated VAT Certificate
  • If not available, please submit to us a notarized statement of undertaking with the relevant Meralco Bill
‚ÄčDeadline for Submission:
  • November 30, 2016 (Wednsday):  Original copy of certificate sent to-  "Biz Partners Group" 10/F, Lopez Building, Meralco Compound, Ortigas, Pasig City
  • November 30, 2016: Scanned copy of your certificate emailed to- VATzerorating@meralco.com.ph

Need help?

Call the Meralco Business Hotline at 16210.
  

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Quick Facts About VAT Zero Rating:
  1. What is a VAT zero-rating certification?  VAT zero-rating certification is granted to entities deemed tax-exempt under special law and international agreement, e.g. enterprises registered with PEZA or the BOI or are embassies.
  2. Why does my company need to submit VAT zero-rating certificate to Meralco? Companies have to submit the certificate to serve as the legal basis for Meralco to apply VAT zero-rating on customers’ electric bill. Otherwise, the corresponding VAT shall be charged to the customers’ electric bill.
  3. When does my company need to submit its VAT zero-rating certification?
    • For new applications:  The certificate must be submitted with the service application requirements.
    • For existing services but not yet VAT zero-rated: The certificate must be submitted to Meralco as soon as the certificate is granted by PEZA/BOI/BIR.
    • For existing VAT zero-rated customers (For renewal): The certificate must be submitted prior to the expiration date of the current certificate. e.g. for PEZA registered enterprises, it  is usually at the end of the year (December 31).
  4. What if my company cannot submit the renewed VAT zero-rating certificate before it expires? (For PEZA and BOI Certificates which will expire by December 31, 2016)
    • In the event that PEZA or BOI Certification is still pending approval, a notarized letter of undertaking must be submitted to Meralco on or before November 30, 2016.
    • The letter of undertaking signifies that your company’s certification is being processed and this will be submitted to Meralco on or before January 31, 2017.
  5. What happens if my company fails to submit its VAT zero-rated certification? 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 customers’ electric bills. Therefore, Meralco will charge your company the corresponding VAT commencing with the January 2017 bills and all succeeding bills thereafter, until such time your company is able to submit the certificate. Once the certificate has been submitted, VAT zero-rating will be effected at the next billing period.
  6. Why is my company being billed with VAT even if I am eligible for VAT zero-rating? You may still be billed with VAT for 2 possible reasons:
    • Your company has yet to submit its certificate to Meralco to serve as the legal basis for Meralco to apply VAT zero-rating on customers’ electric bill. Otherwise, the corresponding VAT shall be charged to the customers’ electric bill.
    • Your company is not being directly billed by Meralco. In this case, please contact your property manager/contractor or the relevant office overseeing your electric bills.
  7. Why is Meralco enforcing a strict deadline on submission? Meralco needs to have a legal basis to apply the VAT zero-rating as per BIR regulation. As a collecting agent, it is Meralco’s responsibility to properly implement the VAT zero-rating for pass through costs like generation charges and other related charges.