- The Philippines is considering a Digital Services Tax bill to tax digital service providers (DSPs)
- The bill aims to bridge the gap between traditional and digital businesses by imposing and collecting VAT from DSPs
- DSPs, whether resident or nonresident, will be liable for assessing, collecting, and remitting VAT on digital services consumed in the Philippines
- Digital services include online search engines, marketplaces, cloud services, media and advertising, online platforms, and digital goods
- Educational services, online subscription-based services to government and educational institutions, and services of financial intermediaries are exempt from the regime
- Nonresident DSPs required to be registered for VAT will be liable for remitting VAT on digital services consumed in the Philippines
- Failure to pass a digital services tax bill is causing the Philippines to lose out on much-needed revenues, estimated at nearly P18 billion for 2024
Source: philstar.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.
