- The VAT on digital services began on June 2, 2025, despite the extended registration period for nonresident digital service providers (NDSPs) until July 1, 2025.
- NDSPs must comply with VAT obligations, including filing VAT returns, even if not registered.
- The VAT on Digital Services Portal is not operational, and the Online Registration and Update System is down, leading NDSPs to use manual registration methods.
- NDSPs may need to appoint local tax representatives to file VAT returns if the portal remains non-operational.
- BIR Form No. 2550-DS is introduced for NDSPs to file quarterly VAT returns, applicable to both B2B and B2C transactions.
- For B2B transactions, NDSPs may file nil payment returns as VAT should be withheld by the buyer.
- The form requires NDSPs to report gross sales and deduct sales subjected to withholding VAT, with any balance subject to VAT payment.
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.
