Philippines Imposes VAT on Foreign Digital Services: What You Need to Know

Philippines signed a law imposing VAT on digital services from foreign providers
RA No. 12023 imposes 12% VAT on cross-border digital services consumed in the country
Law covers streaming platforms, online marketplaces, digital advertising, sale of digital goods, and cloud services
Exemptions include digital educational services and online subscription-based services for educational entities
Non-resident DSPs must register for VAT if sales exceed PHP3 million, collect VAT on B2C sales, and appoint a representative office
Non-compliance will result in temporary suspension
Law takes effect 15 days after publication, foreign DSPs subject to VAT 120 days after IRR issued within 90 days from effective date

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.