VAT on toll to be collected Oct. 1

MANILA, Philippines - Starting Oct. 1, the Toll Regulatory Board (TRB) will implement the 12-percent value added tax (VAT) on toll.

TRB spokesperson Julius Corpuz said the implementation day is the new date set by the Bureau of Internal Revenue for added collection on toll following a meeting yesterday with the TRB and representatives of various toll way management companies in the country.

The BIR, in earlier announcements, had set the start of the new collection date on either Aug. 15 or Sept. 1.

But toll way management companies had expressed concern that the August or September target date was too near.

They said this would not give them enough time to undertake the necessary changes in their systems and accountable papers such as receipts and the recalibration of their cash registers and software systems.

The Supreme Court came out with its ruling on the approval of the collection of the 12-percent VAT on toll last July 19.

Corpuz said the Oct.1 implementation date was proposed by toll companies to give them enough time for smooth implementation of new collection fees.

“They requested Oct.1 and explained their concerns and the BIR had accommodated (the request),” Corpuz said.

“VAT inclusive rates will be published after rounding issues are resolved,” Corpuz said.

The rounding issue involves settling the question of how to round the centavo charges to the toll fees to 25 or 50 centavos for the convenience of toll fee users and collectors.