In keeping with the Ministry of Finance’s 2025 ‘VAT Bonds’ initiative, the Board of Inland Revenue (BIR) has announced that persons registered for VAT (“VAT Registrants”) can now apply for the payment of outstanding VAT refunds, via VAT Bonds.

The BIR further advises that the VAT Bonds would be issued on a first come, first serve basis with an effective date of January 31, 2025 and a tenor of three (3) years. Interest would accrue from the effective date at a fixed rate of 4.01% per annum. A six (6) month moratorium; commencing from the date of issue, will be imposed on the encashment/transferability of the Bonds for companies operating within the energy sector that are zero-rated.