- Philippines enacted Republic Act (RA) No. 12023 to impose VAT on digital services
- Aims to ensure equitable tax treatment for local and foreign digital service providers
- Digital services consumed in the Philippines are subject to 12% VAT
- Definition of digital services includes services supplied over the internet using information technology
- Examples of digital services include cloud services, online media and advertising, digital goods
- Services performed outside the Philippines that require human intervention should not be classified as digital services
- RA No. 12023 did not amend the general coverage of 12% VAT on the sale or exchange of services
Source: grantthornton.com.ph
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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