- RA 12023 imposes VAT on digital services like streaming services and e-commerce platforms
- Digital services include services supplied over the internet or electronic networks
- Nonresident digital service providers will be taxed based on consumer VAT registration status
- VAT-registered consumers must remit VAT to BIR under reverse charge mechanism
- VAT-registered consumers can claim input tax, while NDSPs cannot claim tax credits
- Online/e-marketplaces must remit VAT on transactions of nonresident sellers
- VAT-exempt digital services include online educational services and subscription-based services to government agencies
Source: eutekne.info
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.
