- The Philippines’ Department of Finance has mandated that, starting June 1, 2025, non-resident digital service providers (DSPs) must comply with VAT requirements if their gross sales exceed PHP 3 million, following the enactment of Republic Act No. 12023 on October 2, 2024.
- The new regulations impose a 12% value-added tax (VAT) on non-resident DSPs, including popular streaming services, and outline distinct filing and payment responsibilities based on whether the services are sold business-to-business (B2B) or business-to-consumer (B2C).
- For B2B transactions, buyers must file VAT returns and pay within 10 days of withholding, while for B2C transactions, DSPs are responsible for filing returns and paying VAT within 25 days of the quarter’s end, with an option for monthly filing and payment.
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