12 % VAT on toll fees may start on October 1, 2011

12% Vat on toll fees

In a decision promulgated on July 19, 2011, the supreme court support the legality of Revenue Memorandum Circular 63-2010 - 12% Vat on toll fees issued by the Bureau of Internal Revenue (BIR) on July 13, 2010.

Toll operators may absorb the 12% Vat on toll fees but if it’s an indirect tax you can legally pass the indirect tax to the consumer. Toll operators also did not include the 12 % Vat on toll fees in their computation of their toll fees so it will be less likely that they will absorb the 12% Vat on toll fees.

"Not even the President can stop the implementation of the VAT on toll," BIR Commissioner Kim Henares said. The supreme court has the final authority to interpret tax laws.

The 12% Vat on toll may start of October 1, 2011. The toll operators are just waiting for the computation from the Bureau of Internal Revenue (BIR) for the proper implementation of the 12% Vat on toll fees.

Bureau of Internal Revenue (BIR) is expecting a Two (2) billion pesos collection from the implementation of the 12% Vat on toll fees.