On September 21,2021, the Senate of the Philippines passed on third reading House Bill 7425 seeking to amend Section 105 of the National Internal Revenue Code (NIRC) by imposing 12% value-added tax (VAT) to digital service providers (DSP) that operate through online platforms. The Bill aims to generate new funding sources to assist the government’s COVID-19 response efforts. Bureau of Internal Revenue (BIR) has been tasked to establish a simplified automated registration system for nonresident digital service providers to improve efficiency and reduce administrative burden.
Source: globalvatcompliance.com
