- Philippines implements 12% VAT on foreign digital services providers.
- VAT applies to digital services and goods provided to Filipino consumers.
- Foreign companies providing digital services or selling digital goods must apply 12% VAT on gross sales exceeding PHP 3 million annually.
- Companies exceeding the threshold must register with the Bureau of Internal Revenue (BIR) within 60 days.
- Registration can be completed through the VAT on Digital Services (VDS) portal without appointing a local tax representative.
- Foreign digital service providers must issue invoices containing specific information.
- Failure to comply with regulations can result in penalties, including business suspension.
Source: vatabout.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.
