- Bicameral Conference Committee approved a bill imposing VAT on non-resident digital service providers
- Final version of the bill reconciles conflicting provisions from House and Senate bills
- Digital services rendered in trade or business now subject to VAT
- Non-resident DSPs considered to have performed services in Philippines if consumed there
- Definition of digital service and DSP provided in the bill
- VAT registration required for those selling digital goods or services
- VAT to be assessed, collected, and remitted by DSPs for non-VAT registered customers
- Business-to-business transactions subject to reverse-charge mechanism
- Online marketplaces liable for remitting VAT on transactions of non-resident sellers on their platform
Source: insightplus.bakermckenzie.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.
