- Philippines imposes 12% VAT on non-resident digital service providers
- Law aims to streamline tax collection on digital transactions from popular platforms
- Law covers a broad range of digital services including online marketplaces, streaming platforms, and digital advertising
- Nonresident digital service providers with gross annual sales exceeding P3 million must register with BIR
- Certain services are exempt from VAT under the law, including online courses and financial services
- Law expected to generate P105 billion in revenue over the next five years
- 5% of revenue will be allocated to the country’s creative industry
- Law will be implemented in stages with IRR issued within 90 days and a 120-day transition period for enforcement
Source: globalvatcompliance.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.
