- Philippines imposes 12 percent VAT on foreign B2C digital services
- Aims to create a more competitive environment for local digital service providers
- Other countries in the region have also introduced digital tax regulations
- Foreign digital service providers responsible for collecting, assessing, and remitting VAT
- Anticipated to generate PHP 83.8 billion between 2024 and 2028
- Definition of digital service and digital service provider provided in Senate Bill 2528
- VAT registration required if gross sales exceed PHP 3 million in 12 months
- VAT remittance process outlined for B2C and B2B transactions
- VAT exemptions for certain online educational services
- Online marketplaces must also pay VAT on transactions made by nonresident sellers on their platform
Source: aseanbriefing.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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