VAT on Non-Resident Services: Performance in the Philippines as Key Requirement

• Services are subject to VAT in the Philippines if performed in the country.
• VAT is not based solely on utilization or consumption in the Philippines.
• The service must be performed in the Philippines to be subject to VAT.
• Jurisprudence states VAT can only be levied if acts are performed within the Philippines.
• VAT is not applicable to services rendered outside the Philippines, even if consumed in the country.
• Rules apply to both resident and non-resident service providers.
• Digital services by non-residents are subject to VAT if consumed in the Philippines, per RA No. 12023.
• This law considers digital services performed in the Philippines if consumed there.

Source: bdblaw.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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