- BIR issued guidelines for VAT compliance for nonresident digital service providers (NRDSPs) on 29 July 2025.
- NRDSPs are subject to a 12 percent VAT on digital services consumed in the Philippines from 2 June 2025.
- NRDSPs must register via the VDS portal or through a Philippine resident third party service provider.
- Appointment of a third party service provider must be notified to the BIR within 30 days.
- VAT returns and payments are due by the 25th day of the month following each taxable quarter.
- Payments must be made through the VDS portal or as prescribed by the BIR.
- NRDSPs cannot claim VAT refunds but can amend forms to reflect overpayments for future quarters.
- BIR may verify NRDSPs’ sales declarations and inform them of discrepancies for correction.
- Non-compliance may result in surcharges, penalties, interest, criminal liability, and site blocking.
- Discrepancies not rectified may lead to administrative and criminal sanctions.
Source: taxathand.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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