Simplicity: Key to Success in Implementing VAT Law on Foreign Digital Service Providers

• President Marcos signed a law imposing a 12% VAT on foreign digital service providers
• The law aims to remove the advantage foreign DSPs have over local counterparts
• The government hopes to raise P105 billion in revenues over the next five years
• The law aligns the Philippines with other countries taxing global tech giants
• The BIR is working on a simplified registration and payment system for non-resident DSPs
• Implementation of the digital VAT will begin 120 days after the publication of the law’s IRR
• Crafting the IRR is a difficult task to ensure compliance with the law.

Source: opinion.inquirer.net

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.