- Senate bill seeks to impose a 12% VAT on digital transactions
- Nonresident foreign online marketplaces with customers in the Philippines will be included in the tax
- Nonresident electronic marketplaces will be required to withhold and remit VAT on transactions with buyers in the Philippines
- Foreign online streaming platforms with subscribers in the Philippines currently do not pay 12% VAT
- The tax measure is expected to bring in P83.8 billion in revenue from 2024 to 2028
- Online courses, seminars, and training programs by accredited private educational institutions are exempt from the VAT
- A “reverse charge mechanism” will make the recipient of goods or services liable to pay the VAT instead of the provider
- The Commissioner of Internal Revenue can order the blocking or suspension of digital providers who do not pay the VAT
- The House of Representatives approved a similar measure in November 2022
- The goal is to create a level playing field for digital service providers in terms of tax policies.
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.
