- Implementation of VAT on Digital Services: The Bureau of Internal Revenue (BIR) has issued Revenue Regulation 003/2025, outlining the application of a 12% VAT on digital services as mandated by Republic Act No. 12023, including compliance requirements for digital service providers (DSPs).
- Registration and Compliance Requirements: Non-resident DSPs must register with the BIR within 60 days of the regulation’s effective date and comply with VAT obligations 120 days thereafter, while local DSPs must meet regular VAT obligations and manage VAT for transactions involving non-resident suppliers.
- Invoicing and Penalties: Local DSPs must adhere to local invoicing rules, while non-resident DSPs are required to issue invoices in English with specific details. Non-compliance with these regulations may lead to penalties, including potential criminal charges and suspension of operations by the BIR.
Source: regfollower.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.
