The City of San Fernando Water District (CSFWD) announced that the removal of the 12% value-added tax (VAT) on water bills will be applied retroactively starting November 18, 2025, according to an official advisory issued by the district.
CSFWD said the retroactive coverage includes billing from November 18, 2025 until the February 2026 billing period, following the approval of Board Resolution No. 15, Series of 2026, by its Board of Directors on February 11, 2026.
The resolution directs the removal of VAT from water bills issued by CSFWD and makes the adjustment retroactive to the effective date of the resumption of its business operations on said date, corresponding to the December 2025 billing cycle, the water district said in its announcement.
According to CSFWD, VAT already collected during the covered period will be reversed and applied as advance payments to customers’ water accounts, subject to existing accounting, auditing, and tax regulations.
The water district also said it will issue a separate advisory on new water rates reflecting the VAT removal. It added that this will take effect starting with the March 2026 billing period.
CSFWD said the move will ensure correct billing and compliance with applicable laws and regulations.