- The Philippines recently enacted Republic Act No. 12023, known as the VAT on digital services law
- The law imposes VAT obligations on digital service providers (DSPs) in the country, both resident and non-resident
- Non-resident DSPs are assigned unprecedented VAT responsibilities under the new law
- The law aims to generate an estimated P16-billion VAT collection annually and level the playing field between traditional and digital businesses
- Digital service is defined as any service supplied over the internet or electronic network using information technology
- Non-resident DSPs must register with the BIR for VAT purposes if their gross sales exceed a certain threshold
Source: bworldonline.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.
