- Innovation has evolved from basic communication tools to a global digital ecosystem.
- Digital platforms have transformed entertainment, music, app access, and information storage.
- Marketplaces, advertising, gaming, and online learning platforms are now essential.
- Innovation drives industry transformation, productivity, and economic value.
- Governments must adapt fiscal policies to digital services.
- The Philippine government enacted Republic Act No. 12023 for VAT on digital services.
- The Act defines digital services and establishes a framework for taxation.
- A 12% VAT is imposed on non-resident digital service providers.
- Non-resident providers must register, issue invoices, and remit taxes.
- Certain digital services are exempt from VAT to support social equity.
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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