Philippines: VAT on Digital Services – Compliance Guidelines for Foreign and Local Providers

• Digital services in the Philippines will be taxed at a 12% rate
• Revenue Regulation 003/2025 outlines VAT application on digital services
• Criteria for determining if digital services are used or consumed in the Philippines
• Foreign nonresident DSPs must register with the BIR within 60 days
• Local DSPs must comply with regular VAT obligations
• Nonresident VAT-registered DSPs must file VAT return electronically
• Nonresident DSPs acting as electronic marketplaces are responsible for VAT payment
• Invoicing requirements for local and nonresident DSPs

Source: kpmg.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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