- The Philippine BIR issued RMC No. 059-2026 to clarify VAT rules on digital services under RR No. 003-2025.
- Nonresident digital service providers must still register with the BIR and file VAT returns even if their services are VAT-exempt.
- In cross-border cost-sharing arrangements, VAT still applies; the Philippine subsidiary must withhold and remit VAT as a B2B transaction.
- The foreign affiliate may be treated as the NRDSP and required to register if it controls key supply terms or the ordering/delivery of the digital services.
Source: regfollower.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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