- Republic Act No. 12023, known as the VAT on digital services law, took effect on 18 October
- The law introduces amendments to the general VAT provisions of the Tax Code
- Digital services are defined as services provided over the Internet or electronic networks
- Non-resident DSPs have unprecedented VAT responsibilities under the new law
- Non-resident DSPs must register for VAT if their gross sales exceed P3 million
- They must issue VAT invoices for services consumed in the Philippines
- VAT payment depends on whether the consumer is VAT-registered or not
- Online marketplaces may be required to forward VAT on behalf of non-resident sellers
- Further clarifications on the law are expected from the tax authority
Source: fiscal-requirements.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.
