- Philippines’ legislature has approved legislation for VAT on services provided electronically by overseas suppliers
- 12% VAT will apply to services by overseas businesses without physical operations in the Philippines
- Exceptions include certain education-related and financial services
- VAT will be collected by overseas suppliers for business-to-consumer supplies
- Reverse charge mechanism will apply for business-to-business supplies
- VAT registration required for overseas suppliers with PHP3m turnover or more in a 12-month period
- Legislation awaiting approval by the President to become law
Source: answerconnect.cch.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.
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