- VAT on digital services was passed into law under Republic Act (RA) No. 12023 on October 2, 2024
- Government targets an additional estimated P105 billion in revenues over the next five years from VAT on digital services
- Impact of VAT on consumer behavior on online entertainment and shopping is a consideration
- Digital services are defined as services supplied through the internet or electronic networks
- All digital service providers, resident or non-resident, are covered by the law
- Exemptions from VAT include digital services provided by banks, educational services, and online courses
- Non-resident digital service providers are required to register as VAT taxpayers with the Bureau of Internal Revenue
Source: grantthornton.com.ph
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.
