- Republic Act No. 12023 was published in the Philippine Official Gazette on Oct. 3
- The law imposes a 12 percent VAT rate on all digital services consumed in the country
- A 5 percent VAT rate is imposed on registered nonresident digital service providers (DSPs) providing services to the government
- Nonresident DSPs with gross sales exceeding 3 million Philippine pesos in the past year must register for VAT
- Nonresident DSPs must designate a resident corporation registered under Philippine law for compliance with the Tax Code
- Specified educational digital services are exempt from VAT
- Implementing rules and regulations must be promulgated within 90 days of the law’s entry into force
- Nonresident DSPs must comply with the law 120 days after the effective date of the rules and regulations
- The law comes into force on Oct. 18.
Source: news.bloombergtax.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.
