- Philippines Senate accepted Senate Bill (SB) No. 2528 for consideration
- Proposed 12% VAT on digital services consumed in the Philippines
- Digital services include online search engines, online marketplaces, cloud services, online media, etc.
- Exemptions include educational services, services to government institutions, and services of financial intermediaries
- Nonresident DSPs required to charge and collect VAT for B2C sales, while B2B customers self-assess and remit VAT
- Details on determining customer location and consumption in the Philippines not provided
- Online marketplaces liable to remit VAT on transactions of nonresident sellers
- DSPs required to register for VAT if gross sales exceed PHP 3 million in a 12-month period
- No requirement to appoint a fiscal representative, simplified registration system for DSPs.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
