- The BIR expects to collect P21 billion from VAT on foreign digital services in 2026.
- This tax is part of efforts to meet a higher revenue target of P3.58 trillion for 2026, up 15.4% from 2025 collections.
- The 12% VAT on nonresident digital service providers began in June 2025, with full collection starting in August via a dedicated online portal.
- Digitalization and economic growth are expected to further boost tax collections.
- E-payment adoption is high, with 85% of tax payments made electronically in 2025.
Source: abs-cbn.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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